Question

XYZ Products manufactures a variety of products in its factory. Data
for the most recent month’s operations
appear below:
Beginning raw materials inventory ........................ $120,000
Purchases of raw materials .................................. $1,380,000
Ending raw materials inventory ............................ $90,000
Direct labor ........................................................... $270,000
Manufacturing overhead ....................................... $740,000
Beginning work in process inventory .................... $240,000
Ending work in process inventory ......................... $260,000
Required:
How much is the cost of goods manufactured for the company for
the month

Answer 1

Cost of goods manufactured = $ 2,400,000

Schedule of Cost of Goods Manufactured
Direct Material
Raw material Inventory Beginning	$   1,20,000.00
Raw material Purchased	$ 13,80,000.00
Raw material available for use	$ 15,00,000.00
Less: Raw material Inventory Ending	$       90,000.00
Direct Material Used		$ 14,10,000.00
Direct labor		$   2,70,000.00
Manufacturing overheads applied		$   7,40,000.00
Total manufacturing Cost incurred during the period		$ 24,20,000.00
Add: Work in process Beginning		$   2,40,000.00
Total Manufacturing cost to account for		$ 26,60,000.00
Less: Work in process Ending		$   2,60,000.00
Cost of Goods Manufactured		$ 24,00,000.00