Answer:
COGS= $154,500
Explanation:
<u>First, we need to calculate the cost of goods manufactured:</u>
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 50,000 + 95,000 - 63,000= $82,000
cost of goods manufactured= 74,500 + 82,000 + 58,500 + 79,500 - 107,000
cost of goods manufactured= $187,500
<u>Now, the cost of goods sold:</u>
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 125,000 + 187,500 - 158,000
COGS= $154,500
