Question

Xia Co. manufactures a single product. All raw materials used are traceable to specific units of product. Current information for company follows:
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


The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:________

Answer 1

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