Answer:
Instructions are below.
Explanation:
Giving the following information:
Beginning raw materials inventory $14,000
Ending raw materials inventory 17,000
Raw material purchases 91,000
Beginning work in process inventory 26,000
Ending work in process inventory 36,000
Direct labor 116,000
Total factory 91,000
Beginning finished goods inventory 66,000
Ending finished goods inventory 46,000
First, we need to calculate the direct material used:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 14,000 + 91,000 - 17,000
Direct material used= 88,000
Now, we can calculate the cost of goods manufactured:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 26,000 + 88,000 + 116,000 + 91,000 - 36,000
cost of goods manufactured= 285,000
Finally, we can determine the cost of goods manufactured:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 66,000 + 285,000 - 46,000
COGS= $305,000
