Homework SourseMcGown Corp has the following information Additional informa
McGown Corp. has the following information:
Additional information for the year is as follows:
Compute the cost of goods manufactured.
$242,000
$235,000
$248,000
$265,000
| Beginning Inventory (1/1) | Ending Inventory (12/31) | |||||
| Raw Materials Inventory | $ | 20,000 | $ | 30,000 | ||
| Work in Process Inventory | $ | 15,000 | $ | 18,000 | ||
| Finished Goods Inventory | $ | 30,000 | $ | 20,000 | ||
Solution
Direct material used=Raw materials purchases+Beginning raw material inventory-Ending raw material inventory
=(100,000+20000-30000)=$90000
Hence total manufacturing cost=direct material used+direct labor+manufacturing overhead applied
=(90000+75000+80000)=$245000
Hence the cost of goods manufactured.=total manufacturing cost+beginning wip-ending wiip
=(245000+15000-18000)
which is equal to
=$242000.
