Question

Sienna Company has the following information for January. Cost of direct materials used in production $20,000 Direct labor 15,000 Factory overhead 24,000 Work in process inventory, January 1 2,900 Work in process inventory, January 31 3,500 Calculate the cost of goods manufactured.

Answer 1

Answer:

The cost of goods manufactured is $58400.

Explanation:

total manufaturing costs = Cost of direct materials used in production  + Direct labor + Factory overhead

                                         = $20,000 + $15,000 + $24,000

                                         = $59000

cost of goods manufactured = Work in process inventory, January 1 + total manufacturing costs -Work in process inventory, January 31

= $2,900 + $59000 - $3,500

= $58400.

Therefore, the cost of goods manufactured is $58400.