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9 January, 10:58

Cost of Goods Manufactured for a Manufacturing Company

The following information is available for Ethtridge Manufacturing Company for the month ending July 31:

Cost of direct materials used in production $1,150,000

Direct labor 966,000

Work in process inventory, July 1 316,400

Work in process inventory, July 31 355,500

Total factory overhead 490,500

Determine Ethtridge's cost of goods manufactured for the month ended July 31.

Ethtridge Manufacturing Company

Statement of Cost of Goods Manufactured

For the Month Ended July 31

$

Add manufacturing costs incurred during July:

$

Total manufacturing costs incurred

Total manufacturing costs $

Cost of goods manufactured $

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Answers (1)
  1. 9 January, 12:24
    0
    Cost of goods manufactured $ 2567,400

    Explanation:

    Ethtridge Manufacturing Company

    Statement of Cost of Goods Manufactured

    For the Month Ended July 31

    Direct materials $1,150,000

    Direct labor 966,000

    Total factory overhead 490,500

    Total manufacturing costs $ 2606500

    Add July 1 Work in process inventory, 316,400

    Cost of Goods Available for manufacture $ 2922,900

    Less July 31 Work in process inventory, 355,500

    Cost of goods manufactured $ 2567,400

    When we add the direct materials. direct labor and FOH we get the total manufacturing costs.

    When the total manufacturing costs are added to the opening work in process inventory we get the cost of goods available for manufacture and we get the cost of goods manufactured by subtracting the ending work in process inventory from the cost of goods available for manufacture.
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