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musickatia [10]
3 years ago
12

Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $ 29,000 $ 31,

000 Work in process $ 17,000 $ 19,000 Finished goods $ 33,000 $ 48,000 Additional information: Raw materials purchases $ 67,000 Direct labor cost $ 92,000 Manufacturing overhead cost incurred $ 60,000 Indirect materials included in manufacturing overhead cost incurred $ 8,400 Manufacturing overhead cost applied to Work in Process $ 59,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for July is:
Business
1 answer:
Travka [436]3 years ago
6 0

Answer:

$205,600

Explanation:

The computation of the cost of goods manufactured is shown below

= Direct material used + Direct labor used + Manufacturing Overhead

where,

The direct material used

= Beginning raw material + purchase of raw material - ending raw material - Indirect materials included in manufacturing overhead cost incurred

= $29,000 + $67,000 - $31,000 - $8,400

= $56,600

Manufacturing Overhead would be

= Manufacturing overhead + Beginning work-in-process - Ending work-in-process

= $59,000 + $17,000 - $19,000

= $57,000

So, the cost of goods manufactured is

= $56,600 + $92,000 + $57,000

= $205,600

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