Question

Information for the Deuce Manufacturing Company follows. Compute the cost of goods manufactured for this company. Beginning raw materials inventory $ 53,200 Beginning work in process, inventory 78,400 Ending raw materials inventory 58,100 Ending work in process, inventory 98,000 Direct labor 149,800 Total factory overhead 105,000 Raw material purchases 210,000

Answer 1

Answer:

cost of goods manufactured= $440,300

Explanation:

First, we need to determine the direct material used in production:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 53,200 + 210,000 - 58,100

Direct material used= $205,100

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= 78,400 + 205,100 + 149,800 + 105,000 - 98,000

cost of goods manufactured= $440,300