Homework SourseKeeton Company had the following data Calculate the cost of
Keeton Company had the following data:
Calculate the cost of goods sold.
| Cost of materials used | $60,000 | |
| Direct labor costs | 58,000 | |
| Factory overhead | 33,000 | |
| Work in process inventory, beginning | 29,000 | |
| Work in process inventory, ending | 18,000 | |
| Finished goods inventory, beginning | 32,000 | |
| Finished goods inventory, ending | 18,000 |
Solution
Total manufacturing cost=Direct materials used+Direct labor+Factory overhead
=(60000+58000+33000)=$151000
Cost of goods manufactured=Total manufacturing cost+Beginning WIP-Ending WIP
=(151000+29000-18000)=$162000
Hence cost of goods sold=Cost of goods manufactured+Beginning finished goods inventory-Ending finished goods inventory
=(162000+32000-18000)
=$176000.
