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7 July, 20:38

Beg. of Year End of Year Raw Materials Inventory $26000 $31,459 Work in process inventory $35000 $30,113 Finished goods inventory $14000 $28,663 Purchases of DM $73000 Direct Labor $43,853 Indirect Labor $40000 Insurance on plant $10000 Depreciation - plant building and equipment $12,294 Repairs and maintenance - plant $4,987 Marketing expenses $76000 General & administrative expenses $27,805 What is Cost of Goods Sold? (Be careful as values change with each attempt) (Input your answers without dollar signs or commas)

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  1. 7 July, 20:53
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    COGS = $168,899

    Explanation:

    Giving the following information:

    Beginning Raw Materials $26000

    Ending Raw Materials $31,459

    Beginning Work in process $35000

    Ending WIP $30,113

    Beginning Finished goods $14000

    Ending Finished goods $28,663

    Purchases of DM $73000

    Direct Labor $43,853

    Manufacturing overhead:

    Indirect Labor $40000

    Insurance on plant $10000

    Depreciation - plant building and equipment $12,294

    Repairs and maintenance - plant $4,987

    Total = $67,281

    First, we need to calculate the cost of goods manufactured:

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

    cost of goods manufactured = 35000 + (26000 + 73000 - 31459) + 43853 + 67281 - 30113 = 183,562

    Now, we can calculate the cost of goods sold:

    COGS = beginning finished inventory + cost of goods manufactured - ending finished inventory

    COGS = 14000 + 183562 - 28663 = $168,899
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