Question

Jacques has been asked to calculate the cost of goods manufactured for Sully Enterprises for fiscal year 2015. He has accumulated the following values. Beginning work in process inventory, $45,681 Ending work in process inventory, $55,374 Beginning raw materials inventory, $94,782 Ending raw materials inventory, $85,377 Raw materials purchased, $1,487,237 Delivery vehicle purchased, $28,649 282,100 man-hours of factory labor at $21.50/hour 18,600 man-hours of factory oversight labor at $32.40/hour Administrative salaries, $495,000 Factory utilities, $22,300 Factory depreciation, $12,400 Factory repairs, $64,450 What value should Jacques find for the cost of goods manufactured?
A : $8,253,889
B : $7,651,249
C : $8,282,538
D : $8,777,538

Answer 1

Answer:

A $8,253,889

Explanation:

Schedule of Cost of goods manufactured

for the fiscal year 2015

Direct Material                                                                             $

Beginning Raw Material Inventory                                        94,782

Add:Purchases of Raw Material                                        1,487,237

Less: Ending Raw Material                                                  (85,377)

Direct Material Used in Production                                 1,496,642

Direct labour

Factory Labour

(282,100×21.5)                                                                 6,065,150

Oversight Labour

(18,600×32.4)                                                                     602,640

                                                                                           6,667,790

Add: Manufacturing Overhead

Factory Utilities                                                                     22,300

Factory Depreciation                                                             12,400

Factory Repairs                                                                     64,450

                                                                                               99,150

Add:Beginning WIP                                                               45,681

Less:Ending WIP                                                                 (55,374)

Cost Of Goods Manufactured fpr the Year                 8,253,889