Question

Industries is calculating its Cost of Goods Manufactured at​ year-end. Sharpland's accounting records show the​ following:

Answer 1

Answer:

cost of goods manufactured= $334,000

Explanation:

Giving the following information:

Beginning Raw Materials = $13,000

Ending Raw Materials = $15,000

Direct material purchased= $51,000

Direct labor for the year totaled $131,00

Manufacturing overhead= $153,000.

The Work in Process Inventory account:

beginning balance of $24,000

ending balance of $23,000

To calculate the total manufacturing cost, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 24,000 + (13,000 + 51,000 - 15,000) + 131,000 + 153,000 - 23,000

cost of goods manufactured= $334,000