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ss7ja [257]
2 years ago
8

Current information for the Healey Company follows: Beginning raw materials inventory $ 29,200 Raw material purchases 74,000 End

ing raw materials inventory 30,600 Beginning work in process inventory 36,400 Ending work in process inventory 42,000 Direct labor 56,800 Total factory overhead 44,000 All raw materials used were traceable to specific units of product. Healey Company's cost of goods manufactured for the year is:
Business
1 answer:
Rzqust [24]2 years ago
3 0

Answer:

cost of goods manufactured= $167,800

Explanation:

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

First, we need to determine the direct material used in production:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 29,200 + 74,000 - 30,600= 72,600

cost of goods manufactured= 36,400 + 72,600 + 56,800 + 44,000 - 42,000

cost of goods manufactured= $167,800

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