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28 September, 13:07

Ralph'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 What is the costs of goods manufactured?

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  1. 28 September, 13:14
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    cost of goods manufactured = $78,400

    Explanation:

    Giving the following information:

    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

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

    cost of goods manufactured = beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

    cost of goods manufactured = 2,900 + 45,000 + 20,000 + 14,000 - 3,500

    cost of goods manufactured = $78,400
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