Cost of direct materials used in production $16,800
Direct labor 43,400
Factory overhead28,000
Work in process inventory, January 1 70,000
Work in process inventory, January 31 74,200
Finished goods inventory, January 1 29,400
Finished goods inventory, January 31 33,600
For January, determine (a) the cost of goods manufactured and (b) the cost of goods sold.
Answer:
a. Work in process inventory, January 1………………………………
Cost of direct materials used in production………………………
$16,800
$ 70,000
Direct labor……………………………………………………………… 43,400
Factory overhead……………………………………………………… 28,000
Total manufacturing costs incurred during January…………… 88,200
Total manufacturing costs………………………………………… $158,200
Less work in process inventory, January 31……………………… 74,200
Cost of goods manufactured………………………………………… $ 84,000
b. Finished goods inventory, January 1……………………………… $ 29,400
Cost of goods manufactured………………………………………… 84,000
Cost of finished goods available for sale………………………… $113,400
Less finished goods inventory, January 31……………………… 33,600
Cost of goods sold…………………………………………………… $ 79,800