Question

Use the following inventory data for Caddy Golf Company to compute the cost of goods manufactured for the​ year: Data TableDirect Materials Used $ 12,000 Manufacturing Overhead 21,000Work-in-Process Inventory: Beginning Balance 1,000Ending Balance 5,000Direct Labor 9,000Finished Goods Inventory: Beginning Balance 18,000Ending Balance 4,000

Answer 1

Answer:

Cost of goods manufactured    38,000

Cost of Goods Sold                   52,000

Explanation:

First we calcualte the cost added during the period:

Direct Materials used       12,000

Direct Labor                        9,000

Manufacturing Overhead 21,000  

Total cost added              42,000

Then, we calculate the cost of goods manufactured or trasnferred-out

WIP beginning balance                 1,000

Cost added during the period   42,000

WIP ending balance                    (5,000)  

Cost of goods manufactured    38,000

Finally, we calcualte the cost of goods sold

Finished goods beginning         18,000

Cost of goods manufactured   38,000

ending                                        (4,000)  

Cost of Goods Sold                   52,000