Question

Fuzzei Company has the following information for February:
Cost of direct materials used in production $ _____10,200
Direct labor ______________________________________32,000
Indirect costs ____________________________________18,000
Production balance in process, February 1. ________25,000
Production balance in process, February 28. _______26,000
Balance of finished goods warehouse, February 1.__ 11,000
Finished goods warehouse balance, February 28._____13,000

a) Determine the production cost of the finished items ______________
b) Determine the cost of sales ________________

Answer 1

(1) Production cost of Finished Goods :-

Cost of direct materials used in production	10200
(+) Direct labor	32000
(+) Indirect costs	18000
(+) Production balance in process, February 1	25000
(-) Production balance in process, February 28	26000
Production cost of Finished Goods	59200

(2) Cost of Sales :-

Production cost of Finished Goods	59200
(+) Balance of finished goods warehouse, February 1	11000
(-) Finished goods warehouse balance, February 28	13000
Cost of Sales	57200