Question

The following information was extracted from Manuco.'s financial documents.

Beginning raw materials inventory	$55,000
Ending raw materials inventory	$29,000
Beginning work-in-process inventory	$23,000
Ending work-in-process inventory	$60,000
Beginning finished goods inventory	$30,000
Ending finished goods inventory	$55,000
Raw materials purchased during the period	$86,000
Total direct labor cost during the period	$76,000
Total factory overhead cost during the period	$18,000

Assuming that all raw materials are direct materials, calculate the cost of raw materials requisitioned, cost of goods manufactured, and cost of goods sold based on the provided information.

Answer 1

1)	Beginning raw materials					55,000
	Raw materials purchased during the period					86,000
	Raw materials available					141,000
	less ending raw materials					29,000
	Raw materials requistioned					112,000
2)	Raw materials used in production					112,000
	total direct labor cost during the period					76,000
	total factory overhead cost during the period					18,000
	total manufacturing cost during the period					206,000
	add Work in process inventory					23,000
	total					229,000
	less ending work in process inventory					60,000
	cost of goods manufactured					169,000
3)	Beginning finished goods inventory					30,000
	cost of goods manufactured					169,000
	cost of goods available for sale					199,000
	less ending finished goods inventory					55,000
	cost of goods sold					144,000