Answer:
Results are below.
Explanation:
<u>First, we need to calculate the total manufacturing costs:</u>
total manufacturing costs= Raw materials used in production as direct materials + Direct labor costs + (Manufacturing overhead (actual) - Under-applied manufacturing overhead)
total manufacturing costs= 95,000 + 100,000 + (250,000 - 25,000)
total manufacturing costs= $420,000
<u>Now, the cost of goods manufactured:</u>
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cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 130,000 + 420,000 - 145,000
cost of goods manufactured= $405,000
<u>Finally, the cost of goods sold:</u>
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 65,000 + 405,000 - 80,000
COGS= $390,000
