Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct materials: $2,900 VARAIBLE
Factory overhead: $530 MIXED (ussually)
Direct labor: $900 VARIABLE
Beginning work in process: none (December 31, 2017)
Ending work in process: $520 (January 31, 2018)
Beginning finished goods inventory: none (December 31, 2017)
Ending finished goods inventory: $350 (January 31, 2018)
<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 0 + 2,900 + 900 + 530 - 520
cost of goods manufactured= $3,810
<u>Now, we can determine the cost of goods sold:</u>
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
beginning finished inventory= 0
cost of goods manufactured= 3,810
ending finished inventory= (350)
Cost of goods manufactured= $3,460
