Question

Miyose Corporation, a manufacturing company, has provided the following data for the month of June: Raw materials purchased during June totaled $67,000 and the cost of goods manufactured totaled $124,000. Inventories: Beginning Ending Raw Materials $ 23,000 $ 21,000 Finished Goods $ 32,000 $ 37,000 Required (round to nearest dollar with no decimal places) a. What was the cost of direct materials used in production during June? $ b. What was the cost of goods sold for June? Show your work. $

Answer 1

Answer:

a) Cost of direct material used = $69,000

b) cost of goods sold for June = $119,000

Explanation:

Data provided in the question:

Raw materials purchased during June = $67,000

Cost of goods manufactured = $124,000

                               Beginning     Ending  

Raw Materials        $23,000        $21,000

Finished Goods     $32,000        $37,000

Now,

a) Cost of direct material used = Raw material available - Ending raw material

= (Beginning Raw Materials + Raw materials purchased) - Ending raw material

= $23,000 + $67,000 - $21,000

= $69,000

b) cost of goods sold for June

= Cost of goods available for sale - Ending Finished Goods

= $124,000 + $32,000 - $37,000

= $119,000