Assume the following information pertaining to Moonbeam Company: Finished goods inv: Beg: 130,000 End:124,000 Work in process inv: Beg: 85,000 End: 104,000 Direct Materials: Beg: 117,000 End: 130,000 Costs incurred during the period are as follows: Total manufacturing costs: 896,000 Factory Overhead: 199,000 Direct Materials used: 156,000 Cost of goods sold is calculated to be

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Business

Evelyn

13 March, 06:52

Assume the following information pertaining to Moonbeam Company: Finished goods inv: Beg: 130,000 End:124,000 Work in process inv: Beg: 85,000 End: 104,000 Direct Materials: Beg: 117,000 End: 130,000 Costs incurred during the period are as follows: Total manufacturing costs: 896,000 Factory Overhead: 199,000 Direct Materials used: 156,000 Cost of goods sold is calculated to be

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Lauryn Landry · Answer 1

COGS = $883,000

Explanation:

Giving the following information:

Finished goods inv:

Beg: 130,000

End:124,000

Work in process inv:

Beg: 85,000

End: 104,000

Direct Materials:

Beg: 117,000

End: 130,000

Costs incurred during the period are as follows:

Total manufacturing costs: 896,000

Factory Overhead: 199,000

Direct Materials used: 156,000

cost of goods manufactured = beginning WIP + Total manufacturing costs - Ending WIP

cost of goods manufactured = 85000 + 896000 - 104000 = 877,000

COGS = beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS = 130000 + 877000 - 124000 = $883,000