Question

The following information is for X Company, a manufacturer, in 2018: Direct materials purchased $37,195 Direct materials used 34,907 Direct labor 12,467 Overhead 22,360 Work in Process Inventory, January 1, 2018 6,060 Work in Process Inventory, December 31, 2018 8,338 Finished Goods Inventory, December 31, 2018 3,148 Cost of Goods Sold 67,226 What was the balance in Finished Goods Inventory on January 1, 2018?

Answer 1

Computation of Cost of Goods Manufactured
Material Used	$34,907.00
Labour	$12,467.00
Overhead	$22,360.00
Add; Beginning WIP	$6,060.00
Less: Ending WIP	-$8,338.00
Cost of goods Manufactured	$67,456.00
Computation of Beg Finished Goods Inventory
Cost of Goods Sold	$67,226.00
Add: Ending Finished Goods Inventory	$3,148.00
Less: Cost of Goods Manufactured	-$67,456.00
Beg Finished Goods Inventory	$2,918.00

Hence Begining Finished Goods Inventory balance will be $2918