Inventories January 1 January 31 Materials $131,250 $111,560 Work in process 86,

Question

Inventories January 1 January 31 Materials $131,250 $111,560 Work in process 86,630 73,630 Finished goods 68,250 74,750 Direct labor $236,250 Materials purchased during January 252,000 Factory overhead incurred during January: Indirect labor 25,200 Machinery depreciation 15,230 Heat, light, and power 5,250 Supplies 4,200 Property taxes 3,670 Miscellaneous costs



Determine the cost of goods sold for January 6,830

Inventories January 1 January 31 Materials $131,250 $111,560 Work in process 86,630 73,630 Finished goods 68,250 74,750

Explanation / Answer

Direct materials: Raw materials inventory, beginning 131250 Add: Purchases of raw materials 252000 Total raw materials available 383250 Deduct: Raw materials inventory, ending 111560 Raw materials used in production 271690 Direct labor 236250 Factory overhead incurred during January: Indirect labor 25200 Machinery depreciation 15230 Heat, light, and power 5250 Supplies 4200 Property taxes 3670 Miscellaneous costs 6830 60380 Total manufacturing costs 568320 Add: Beginning work in process inventory 86630 654950 Deduct: Ending work in process inventory 73630 Cost of goods manufactured 581320 Finished goods inventory, beginning 68250 Add: Cost of goods manufactured 581320 Cost of goods available for sale 649570 Deduct: Finished goods inventory, ending 74750 Cost of goods sold 574820

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