Question

The following information is available for Ethtridge Manufacturing Company for the month ending July 31:

Answer 1

Answer:

                             Statement of cost of goods manufactured

Work in process inventory, July 1                                                 $316,400

Add:  Cost of direct materials used in production  $1,150,000

Direct labor                                                                $966,000

Total factory overhead                                              $490,500

Total manufacturing cost incurred                                               $2,606,500

Total manufacturing costs                                                            $2,922,900

Less: Work in process inventory, July 31                                     $355,500

Cost of goods manufactured                                                       $2,567,400