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mamaluj [8]
3 years ago
6

During April, the Meade Enterprises had the following operating results: Direct materials used in production $300,000 Direct lab

or $400,000 Manufacturing overhead incurred $175,000 Ending work-in-process inventory $50,000 Beginning work-in-process inventory $80,000 Ending finished goods inventory $100,000 Beginning finished goods inventory $125,000 Marketing costs $130,000 What is the cost of goods manufactured for April?
Business
1 answer:
postnew [5]3 years ago
7 0

Answer:

Cost of Goods Manufactured 805,000

Explanation:

Beginning            80,000

Materials 300,000

Labor      400,000

Overhead 175,000

Total Cost added 875,000

          Ending       (50,000)

The company has a beginning inventory, then it adds materials, labor and overhead to process the units.

All those are capitalized cost, the marketing cost are not manufacturing cost, so are ignored.

Then we have an ending WIP those are unit not yet complete, so are not completely manufactured, so we don't transfer their balance into finished goods.

Cost of Goods Manufactured

beginning WIP + cost added - ending WIP = 905,000

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Incomplete question. The missing part of the text which adds some context read:

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Answer:

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