Question

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

Cost of direct materials used in production	$16,041
Direct labor	28,314
Factory overhead	39,747
Work in process inventory, March 1	17,360
Work in process inventory, March 31	18,851
Finished goods inventory, March 1	23,602
Finished goods inventory, March 31	27,787

a. Determine the cost of goods manufactured.
$

b. Determine the cost of goods sold.
$

Answer 1

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

=17,360+16,041 + 28,314+39,747-18,851

= $ 82,611

Hence the correct answer is $ 82,611

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

= $ 82,611 + 23,602 - 27,787

= $ 78,426

Hence the correct answer is $ 78,426