Cost of direct materials used in production $67,200
Direct labor88,000
Factory overhead44,800
Work in process inventory, July 1 32,800
Work in process inventory, July 31 29,600
Finished goods inventory, July 1 37,600
Finished goods inventory, July 31 27,200
For July, determine (a) the cost of goods manufactured and (b) the cost of goods sold.
Answer:
a. Work in process inventory, July 1………………………………… $ 32,800
Cost of direct materials used in production……………………… $67,200
Direct labor……………………………………………………………… 88,000
Factory overhead……………………………………………………… 44,800
Total manufacturing costs incurred during July………………… 200,000
Total manufacturing costs………………………………………… $232,800
Less work in process inventory, July 31…………………………… 29,600
Cost of goods manufactured………………………………………… $203,200
b. Finished goods inventory, July 1………………………………… $ 37,600
Cost of goods manufactured………………………………………… 203,200
Cost of finished goods available for sale………………………… $240,800
Less finished goods inventory, July 31…………………………… 27,200
Cost of goods sold…………………………………………………… $213,600