Question

On January 1 Primary Manufacturing had a beginning balance in WorkminusinminusProcess Inventory of $ 80 comma 700 and a beginning balance in Finished Goods Inventory of $ 21 comma 000. During the​ year, Primary incurred manufacturing costs of $ 353 comma 000. In​ addition, the following transactions occurred during the​ year: Job Aminus12 was completed for a total cost of $ 125 comma 000 and was sold for $ 126 comma 000. Job Aminus13 was completed for a total cost of $ 203 comma 000 and was sold for $ 212 comma 000. Job Aminus15 was completed for a total cost $ 62 comma 000 but was not sold as of yearminusend. The Manufacturing Overhead account had an unadjusted credit balance of $ 10 comma 000​, and was adjusted to zero at yearminusend. What was the final balance in the Cost of Goods Sold​ account?

Answer 1

Answer:

$318,000

Explanation:

The formula to compute the final balance in the cost of goods sold is shown below:

= Total cost of Job A -12 + Total cost of Job A -13 - unadjusted credit balance of manufacturing overhead account

= $125,000 + $203,000 - $10,000

= $318,000

The cost of goods sold refers to the direct cost that includes the direct material , direct labor cost etc