Question

Payton Corporation provided the following information for the​ year: Beginning Balancelong dash​Work-in-Process Inventory $ 25 comma 000 Ending Balancelong dash​Work-in-Process Inventory 55 comma 000 Beginning Balancelong dashDirect Materials 83 comma 000 Ending Balancelong dashDirect Materials 62 comma 000 Purchaseslong dashDirect Materials 361 comma 000 Direct Labor 469 comma 000 Indirect Labor 18 comma 000 Depreciation on Factory Plant and Equipment 22 comma 000 Plant Utilities and Insurance 272 comma 000 What was the amount of the cost of goods manufactured for the​ year?

Answer 1

Answer:

$1,133,000

Explanation:

The computation of the cost of goods manufactured is shown below:

= Direct materials used + Direct labor cost + Manufacturing overhead cost + beginning work-in-process inventory - ending work-in-process inventory

where,

Direct material used is

= Opening balance of raw material + purchase made - ending balance of raw material

= $83,000 + $361,000 - $62,000

= $382,000

The manufacturing overhead is

= Indirect labor + Depreciation on Factory Plant and Equipment + Plant Utilities and Insurance

= $18,000 + $22,000 + $272,000

= $312,000

And, the other items would remain the same

So, the cost of goods manufactured is

= $382,000 + $469,000 + $312,000 + $25,000 - $55,000

= $1,133,000

We simply applied the above formula to determine the cost of goods manufactured