Answer:
a. Cost of materials used in production = $78,329
b. Cost of goods manufactured = $299,377
c. Cost of goods sold = $269,833
Explanation:
a. Compute the cost of materials used in production
This can be computed as follows:
Cost of materials used in production = Beginning Raw materials inventory + Raw materials purchased - Ending Raw materials inventory = $17,432 + $77,323 - $16,426 = $78,329
b. Compute the cost of goods manufactured
This can be computed as follows:
Overhead applied = Direct labor costs * 70% = $125,900 * 70% = $88,130
Cost of goods manufactured = Cost of materials used in production + Direct labor costs + Overhead applied + Beginning work in process inventory - Ending work in process inventory = $78,329 + $125,900 + $88,130 + $241,440 - $234,422 = $299,377
c. Compute the cost of goods sold
This can be computed as follows:
Cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory = $312,840 + $299,377 - $342,384 = $269,833
