Answer:
Cost of goods manufactured= $838,000
Explanation:
Giving the following information:
Factory overhead cost was applied at 125% of direct labor cost.
January 1:
Direct materials $ 80,000
Work in process 69,000
Finished goods 118,000
December 31:
Direct materials $43,000
Work in process $45,000
Finished goods $103,000
Direct materials purchases $ 327,000
Cost of good available for sale= 956,000
Cost of good available for sale= beginning finished inventory + cost of goods manufactured
956,000= 118,000 + X
Cost of goods manufactured= $838,000
