X Company had the following inventory account balances in 2012: Account January

Question

X Company had the following inventory account balances in 2012:

Account                           January 1           December 31                            

-Materials                         $17,324             $16,056                                

-Work in Progress               13,094               13,094                                           

-Finished Goods                 17,876               15,874                                           

The following additional information is available:

-Direct Materials purchased    $64,371

-Direct Labor                           30,651

-Overhead                              49,803

What was Cost of Goods in 2012?

Explanation / Answer

cost of direct material is 64371 + ( 17324 - 16056 ) = 65639

direct labour = 30,651

overhead = 49803

change in finished goods is 17876 - 15874 = 2002

Hence cost of goods = 65639 + 30651 + 49803 + 2002 = -$148,095

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