The Cost of Goods Manufactured is $104,100.By adding the direct material cost with the direct labor cost ,factory overhead,beginning work in progress and deducting the value obtained from the ending work in process value we get the The Cost of Goods Manufactured
Explanation:
The information Given in the question is
Beginning finished goods inventory
$ 12,300
Direct labor
32,100
Beginning work in process inventory
8,700
General and administrative expenses
15,000
Direct materials used
42,000
Ending work in process inventory
10,500
Indirect labor
7,800
Ending finished goods inventory
11,000
Indirect materials
15,000
Depreciation - factory equipment
9,000
So the formula for the
Cost of Goods Manufactured = Direct Materials + Direct Labor + Factory Overhead + Beginning Work in Process - Ending Work in Process
Cost of Goods Manufactured = $42,000 + $32,100 (Indirect Labor + Indirect Materials + Depreciation Factory Equipment) + $8,700 − $10,500
Cost of Goods Manufactured = $42,000 + $32,100 + $7,800 + $15,000 + $9,000 + $8,700 − $10,500 = $104,100.
So,the Cost of Goods Manufactured = $104,100.
Solution and Explanation:
Total manufacturing heads = Indirect materials + Indirect labor + depreciation factory equipment
= 15000 + 7800 + 9000 = $31800
The cost of goods manufactured is as follows:
Particulars Amount ($)
Direct materials used 42000
add: direct labor 32100
add: manufacturing overheads 31800
Manufacturing cost 105900
add: begining goods in process
inventory 8700
less: ending goods in process
inventory 10500
Cost of goods manufactured 104100
Thus, the cost of goods that are manufactured is $104100
