Calculate the cost of goods manufactured using the following information: Direct materials $ 299,300 Direct labor 132,800 Factory overhead costs 264,800 General and administrative expenses 86,300 Selling expenses 49,600 Work in Process inventory, January 1 119,300 Work in Process inventory, December 31 126,700 Finished goods inventory, January 1 232,900 Finished goods inventory, December 31 239,500

Question

Libby Cohen

Business

20 September, 05:39

Calculate the cost of goods manufactured using the following information: Direct materials $ 299,300 Direct labor 132,800 Factory overhead costs 264,800 General and administrative expenses 86,300 Selling expenses 49,600 Work in Process inventory, January 1 119,300 Work in Process inventory, December 31 126,700 Finished goods inventory, January 1 232,900 Finished goods inventory, December 31 239,500

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Answers (1)

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Madilynn Serrano · Answer 1

Cost of good manufactured = $1689500

Explanation:

To calculate the cost of manufactured goods we need to use the following formula:

Cost of good manufactured = Beginning work in progress + direct materials of the period + direct labor + manufactured overhead - ending work in progress

Beginning work in progress = $1119300

Direct materials = beginning inventory + purchase - ending inventory = 299300

Direct labor = 132800

Manufactured overhead=264800

Ending work in progress = 126700

Cost of good manufactured = 1119300 + 299300 + 132800+264800-126700 = $1689500