Based on the costs incurred by Shen Company, the schedule of costs of goods sold for manufactured goods is:
Total
Direct materials used $6,300
Direct labor $4,390
<u>Manufacturing overhead $7,560</u>
<u>Total cost $18,250</u>
Beginning WIP $0
Add: Cost during year $18,250
Total manufacturing cost $18,250
<u>Less; Ending WIP $(6,770)</u>
<u>Cost of goods manufactured $11,480</u>
<h3>What goes into the schedule of cost of goods manufactured?</h3>
Direct materials:
= 3,400 + 2,900
= $6,300
Direct labor:
= 4,000 + 390
= $4,390
Manufacturing overhead:
= 6,300 x 1.2
= $7,560
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