Answer:
The cost of goods manufactured is $30,350
Explanation:
For computing the cost of goods manufactured., following steps is to be followed which is explained below:
Step 1 : First we have to compute the cost of raw material produced. The formula is shown below:
= Opening raw material + Purchase = ending raw of material
= $5,500 + 7,400 - 4,000
= $8,900
Step 2: Add the direct labor, deprecation, factory repairs, beginning work in progress inventory to the raw material produced value and than deduct the ending work in progress inventory.
In mathematically,
Raw material produced + direct labor + deprecation on factory equipment + factory repairs + beginning work in progress inventory - ending work in progress inventory
= $8,900 + $12,250 + $6,500 + $3,300 + $5,700 - $6,300
= $30,350
The beginning and ending value of finished goods of inventory is not being considered in the computation part of cost of goods manufactured. Thus, it is not taken.
Hence, the cost of goods manufactured is $30,350
