Question

The following information is available for Jetson Manufacturing for the month ended June 30, Year 1.

Cost of direct materials used in production $325,000

Direct labor 280,000

Work in process inventory, June 1 135,000

Work in process inventory, June 30 142,000

Total factory overhead 195,000

Determine Jetson's cost of goods manufactured for the month ended June 30, Year 1. Show your work

Answer 1

The Answer is $ 793,000

Working:

Particulars	Amount $
Direct Materials used in production(A)	$               325,000
Direct Labor (B)	$               280,000
Factory Overhead( C )	$               195,000
Total Manufacturing costs(A+B+C)	$               800,000
Add: Beginning WIP Inventory	$               135,000
Deduct: Ending WIP Inventory	$            (142,000)
Cost of Goods Manufactured for the Month	$               793,000