Calculate the cost of goods sold using the following information: Direct materials $ 300,100 Direct labor 133,600 Factory overhead costs 265,600 General and administrative expenses 87,100 Selling expenses 50,400 Work in Process inventory, January 1 120,100 Work in Process inventory, December 31 127,500 Finished goods inventory, January 1 233,700 Finished goods inventory, December 31 240,300

The cost of goods sold refers to the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the goods along with the direct labor costs used to produce the goods. It excludes indirect expenses, such as distribution costs and sales force costs.

COGS=Beginning Inventory+Production during period−Ending Inventory

We need to calculate the production during the period.

Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress

Cost of manufactured period=120100+300100+133600+265600-127500

= $91700

Cost of sold goods= $233700 + $91700 - $240300

Cost of sold goods= $85100

lluviapoleth lluviapoleth · Answer 2 · 2020-10-11T05:35:46+02:00

lluviapoleth lluviapoleth

11-10-2020

Answer: $685,300.

Explanation:

Cost of manufactured period=120100+300100+133600+265600-127500

= $91700

Cost of sold goods= $233700 + $91700 - $240300

Cost of sold goods=$685,300.

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