Question

alph's Cafe Company has the following information for June. Cost of materials placed in production $45,000 Direct labor 20,000 Factory overhead 14,000 Work in process inventory, June 1 2,900 Work in process inventory, June 30 3,500 Finished goods inventory, June 1 5,000 Finished goods inventory, June 30 4,700 What is the cost of goods sold?

Answer 1

Answer:

The cost of goods sold is  $ 78,700.

Explanation:

The cost of good sold includes cost related to finished good that are sold to customers. The detail calculation is given below.

opening WIP                             $   2,900

Cost of materials                      $ 45,000

Direct labor                              $ 20,000

Factory overhead                    $ 14,000

Closing WIP                             ($  3,500)

Cost transferred to FG           $ 78,400

Opening FG inventoy              $  5,000    

Closing FG inventory               ($  4,700)

Cost of good Sold                     $ 78,700