Question

During April, the Meade Enterprises had the following operating results: Sales revenue $ 1,660,000 Gross margin $ 680,000 Ending work-in-process inventory $ 58,000 Beginning work-in-process inventory $ 96,000 Ending finished goods inventory $ 108,000 Beginning finished goods inventory $ 141,000 Marketing costs $ 266,000 Administrative costs $ 166,000 What is the cost of goods manufactured for April

Answer 1

Answer:

cost of good manufacture = $947000

Explanation:

given data

Sales revenue = $1,660,000

Gross margin = $680,000

Ending work-in-process inventory = $58,000

Beginning work-in-process inventory = $96,000

Ending finished goods inventory = $108,000

Beginning finished goods inventory = $141,000

Marketing costs = $266,000

Administrative costs = $166,000

solution

cost of goods manufactured for we first we get

cost of good sold = sale revenue  -  gross margin  ............1

cost of good sold = $1,660,000 - $680,000  

cost of good sold = $980000

and

now we get cost of good manufacture that is

cost of good manufacture = cost of good sold + Ending finished goods inventory  - Beginning finished goods inventory ............2

cost of good manufacture = $980000 + $108,000 - $141,000  

cost of good manufacture = $947000