Answer:
Opening finished goods Inventory $36,000
Add Cost of Goods Manufactured $944,000
Less Closing finished goods Inventory ($42,000)
Cost of Goods Sold $938,000
Explanation:
Step 1 Calculate Raw Material Costs requisitioned for manufacturing.
Materials Requisites = Opening Raw Materials Inventory + Purchases of Raw Materials - Closing Stock of Raw Materials
= $36,000+$580,000-$19,000
= $ 597,000
Step 2 Calculate Cost of Goods Manufactured
Raw Materials $597,000
Direct labor $202,000
Factory overhead $144,000
<em>Add</em> Opening work in process Inventory $34,000
<em>Less</em> Closing work in process Inventory ($33,000)
Cost of Goods Manufactured $944,000
Step 3 Calculate the Cost of Goods Sold
Opening finished goods Inventory $36,000
Add Cost of Goods Manufactured $944,000
Less Closing finished goods Inventory ($42,000)
Cost of Goods Sold $938,000
