Question

Zoe Corporation has the following information for the month of March.

Cost of direct materials used in production	$16,558
Direct labor	25,121
Factory overhead	35,259
Work in process inventory, March 1	22,807
Work in process inventory, March 31	18,078
Finished goods inventory, March 1	22,097
Finished goods inventory, March 31	25,457

a. Determine the cost of goods manufactured.
$

b. Determine the cost of goods sold.
$

Answer 1

a.The cost of goods manufactured= Cost of direct materials used in production+ Direct labor + Factory overhead + Work in process inventory, March 1 - Work in process inventory, March 31

= $ 16,558 + $ 25,121+$ 35,259 +$ 22,807 - $ 18,078

= $ 81,667

Hence the correct answer is $ 81,667

b. The cost of goods sold = Finished goods inventory, March 1 + cost of goods manufactured - Finished goods inventory, March 31

= $ 22,097 + $ 81,667- $ 25,457

= $ 78,307

Hence the correct answer is $ 78,307