cost of goods sold in August is Required information The fol

cost of goods sold in August is

Required information (The following information applies to the questions displayed below. The following information has been taken from the perpetual inventory system of Elite Mig. Co.for the month ended August 31: Purchases of direct materials Direct materials used Direct labor costs assigned to production Manufacturing overhead costs incurred (and applied) $79,000 $67,000 $21,000 $35,000 Balances in inventory Materials Work in Process Finished Goods August 31 August 1 $? 42,000 $63,000 56,500 $68,000 48,700 The cost of finished goods manufactured in August is:

Solution

Statement of Cost of Goods Manufactured Direct Material Material Inventory, August 1      42,000.00 Material Purchased      79,000.00 Total Direct Material Available for Prouction    121,000.00 Material Inventory, Aug 31 - $121,000 - $67,000    (54,000.00) Cost of Direct Materials Used in Productions      67,000.00 Direct Labor      21,000.00 Manufacturing Overhead      35,000.00 Total Manufacturing Costs incurred May    123,000.00 WIP Inventory, Aug 1      56,500.00 WIP Inventory, Aug 31    (63,000.00) Cost of Goods Manufactured    116,500.00 Statement of Cost of Goods Sold Finished Goods Inventory, Aug 1      48,700.00 Cost of Goods Manufactured    116,500.00 Cost of Goods Available for Sale    165,200.00 Finished Goods Inventory, Aug 31    (68,000.00) Cost of Goods Sold      97,200.00