Answer:
COGS= $2,218,200
Explanation:
Giving the following information:
WIP:
Beginning= 28,500
Ending= 23,700
Finished goods:
Beginning= 19,300
Ending= 22,400
Direct materials:
Purchased= 854,000
Beginning inventory= 31,000
Ending inventory= (26,000)
Direct material used= 859,0000
Totals from other budgets included:
Direct labor cost= $539,500
Total factory overhead costs= $818,000
First, we need to calculate the cost of goods manufactured:
cost of goods manufactured= beginning WIP + direct materials used + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 28,500 + 859,000 + 539,500 + 818,000 - 23,700
cost of goods manufactured= $2,221,300
Now, we can calculate the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 19,300 + 2,221,300 - 22,400
COGS= $2,218,200
