alph's Cafe Company has the following information for June. Cost of materials placed in production $45,000 Direct labor 20,000 Factory overhead 14,000 Work in process inventory, June 1 2,900 Work in process inventory, June 30 3,500 Finished goods inventory, June 1 5,000 Finished goods inventory, June 30 4,700 What is the cost of goods sold?

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Business

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4 February, 16:01

alph's Cafe Company has the following information for June. Cost of materials placed in production $45,000 Direct labor 20,000 Factory overhead 14,000 Work in process inventory, June 1 2,900 Work in process inventory, June 30 3,500 Finished goods inventory, June 1 5,000 Finished goods inventory, June 30 4,700 What is the cost of goods sold?

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Giovanny Francis · Answer 1

The cost of goods sold is $ 78,700.

Explanation:

The cost of good sold includes cost related to finished good that are sold to customers. The detail calculation is given below.

opening WIP $ 2,900

Cost of materials $ 45,000

Direct labor $ 20,000

Factory overhead $ 14,000

Closing WIP ($ 3,500)

Cost transferred to FG $ 78,400

Opening FG inventoy $ 5,000

Closing FG inventory ($ 4,700)

Cost of good Sold $ 78,700