Answer:
COGS= $136,000
Explanation:
<u>First, we need to calculate the cost of goods manufactured:</u>
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cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
We deduct the indirect material from the direct material purchase, so we don't sum it twice.
Because it is the unadjusted cost of goods sold, we take into account the allocated overhead.
cost of goods manufactured= 56,000 + (10,000 + 33,000 - 4,000 - 15,000) + 58,000 + 78,000 - 72,000
cost of goods manufactured= $144,000
<u>To calculate the unadjusted cost of goods sold, we need to use the following formula:</u>
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 41,000 + 144,000 - 49,000
COGS= $136,000
