The following data were taken from the precision Milling Machine, Inc., cost rec

Question

The following data were taken from the precision Milling Machine, Inc., cost records for the current year. Compute the amount of raw materials used in production during the year: Raw materials inventory, beginning........ $10,000 Raw material inventory, ending................ $15,000 Purchases of raw materials.................... $145,000 Suppose all of the raw materials used in production by Precision Milling Machine in the preceding exercise were direct materials. The company has supplied the following additional information: Direct labor cost............................................ $240,000 Manufacturing overhead applied................. $90,000 Work in process inventory, beginning........ $60,000 Work in process inventory, ending.............. $75,000 Compute The cost of goods manufactured for the year.

Explanation / Answer

Calculation of amount of raw materials used in production during the year $10000 + $145000 - $15000 = $140000 cost of goods manufactured for the year is = $60000 + $140000 +$240000 + $90000 - $75000 = $455000

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