Cost of direct materials used in production $325,000
Direct labor 280,000
Work in process inventory, January 1 135,000
Work in process inventory, January 31 142,000
Total factory overhead 195,000
Determine Rubleske’s cost of goods manufactured for the month ended January 31, 2014.
Answer:
Work in process inventory, January 1, 2014……………………… $135,000
Add manufacturing costs incurred during January:
Cost of direct materials used in production…………………… $325,000
Direct labor…………………………………………………………… 280,000
Factory overhead…………………………………………………… 195,000
Total manufacturing costs incurred……………………………… 800,000
Total manufacturing costs…………………………………………… $935,000
Less work in process inventory, January 31, 2014………………… 142,000
Cost of goods manufactured………………………………………… $793,000