The following information is provided for a compamy that use

The following information is provided for a compamy that used normal costing:

Beg Mat, $2,000
End Mat, $4,000
Beg WIP, $5,000
End WIP, $3,000
Beg FG, $8,000
End FG, $7,000
DM used, $10,000
DL used, $12,000
OH applied, $6,000

What was the company\'s cost of goods manufactured?

Solution

Cost of goods manufactured = Direct material used + Direct labour cost + Manufacturing overheads applied + beginning work-in-process inventory - ending work-in-process inventory

Particulars

                                           Amount

Direct material used

$10,000

Direct labour cost

$12,000

Overheads applied

$6,000

Total

$28,000

Add: Beginning work in progress

$5,000

Less: Ending work in progress

($3,000)

Cost of goods manufactured

$30,000