Answer:
COGS= $680500
Explanation:
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= 118,500+ 298,500 + 132,000 + 264,000 - 125,900 =$687,100
COGS= 232,100 + 687,100 - 238,700=$680500
Answer:
Cost of Goods Sold 680,500
Explanation:
Adding the cost component of materials, labor and overhead we got the total cost added during the period.
Then, we work with the work in process to obtain the cost of good manufactured.
Finally, with the cost of good manufactured and the finished goods inventory we solve for COGS
cost added
materials 298,500
direct labor 132,000
manufacturing overhead 264,000
total cost added during the period 694,500
WIP beginning 118,500
cost added 694,500
WIP ending (125,900)
Cost of Goods Manufactured 687,100
Finished Goods inventory beginning 232,100
Cost of goods manufactured 687,100
Finished Goods inventory ending (238,700)
Cost of Goods Sold 680,500
