Question

Buxmont Manufacturing reported the following year-end balances: Beginning work in process inventory, $40,000; beginning finished goods inventory, $60,000; ending work in process inventory, $20,000; ending finished goods inventory, $30,000; direct materials used, $240,000; direct labor, $250,000; manufacturing overhead, $150,000; selling expenses, $50,000; and administrative expenses, $350,000. How much would Buxmont Manufacturing report as cost of goods manufactured at year-end?

Answer 1

Answer: Cost of Goods Manufactured = $ 660,000

Explanation:

Direct Material Used                                                $ 240,000

Direct labor                                                               $ 250,000

Manufacturing overheads applied                          $ 150,000

Total manufacturing Cost                                        $ 640,000

Add: Work in process                                            $ 40,000

Total Manufacturing cost                                         $ 680,000

Less: Work in process                                            $ 20,000

Cost of Goods Manufactured                                  $ 660,000