Question

Margot's Deli Company has the following information for July. Cost of materials placed in production $30,000 Direct labor 25,000 Factory overhead 14,000 Work in process inventory, July 1 2,900 Work in process inventory, July 31 3,500 What is the cost of goods manufactured

Answer 1

Answer:

cost of goods manufactured= $68,400

Explanation:

Giving the following information:

Cost of materials placed in production $30,000

Direct labor 25,000

Factory overhead 14,000

Work in process inventory, July 1 2,900

Work in process inventory, July 31 3,500

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 2,900 + 30,000 + 25,000 + 14,000 - 3,500

cost of goods manufactured= $68,400