Question

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?

Answer 1

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