Zoe Corporation has the following information for the month of March: Cost of direct materials used in production$17,811 Direct labor29,363 Factory overhead32,472 Work in process inventory, March 120,353 Work in process inventory, March 3119,710 Finished goods inventory, March 124,290 Finished goods inventory, March 3128,183

The question is not complete as requirement is not given.

However, in supply of information like this, determination of cost of sale is generally assumed to be the requirement.

The cost of sale for Zoe corporation for March is $76,396

Explanation:

Two accounts are needed to derive the cost of sale: manufacturing account and trading account.

Manufacturing account is prepared to determine the cost of production. The preparation of cost of production involves three major steps:

1. Determination of prime cost by adding direct material cost with material labor cost and other direct manufacturing cost.

2. Adding prime cost with factory overhead cost.

3. Adding changes in work in progress (Opening WIP minus Closing WIP) to value arrived at step 2.

The figure arrived at is cost of production.

Trading account is prepared to derive the cost of sale for a particular period.

It involves adding opening finished goods with purchases (if any) and cost of production. After this, closing finished goods is subtracted from the figure derived above to arrive at cost of sales for the period.

Using information supplied by Zoe Corporation, the cost of sale is:

Zoe Corporation

Manufacturing Account For March

$ $

Cost of direct materials used in production 17,811

Direct Labor 29,363

Prime Cost 47,174

Add: Factory Overheard 32,472

79,646

Changes in Work in Progress

Begininng WIP 20,353

Closing WIP (19,710) 643

Cost of Production 80,289

Trading Account For March

$

Opening Finished inventory 24,290

Add:Cost of production 80,289

104,579

Closing Finished Inventory (28,183)

Cost of Sale 76,396