Answer:
Instructions are below.
Explanation:
<u>First, we need to calculate the direct material used and the manufacturing overhead:</u>
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 22,000 + 74,000 - 34,000
Direct material used= $62,000
Manufacturing overhead:
Insurance on plant $9,500
Depreciation-plant building and equipment 12,600
Repairs and maintenance-plant 3,900
Indirect labor 42,000
Total overhead= $68,000
<u>Now, we can determine the cost of goods manufactured:</u>
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 41,000 + 62,000 + 88,000 + 68,000 - 27,000
cost of goods manufactured= 232,000
<u>Finally, the cost of goods sold:</u>
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 13,000 + 232,000 - 21,000
COGS= $224,000
