In: Accounting
Custom Designs
Please use the following data to determine the value of cost of goods sold that should be included within Custom Design’s income statement.
Inventories Beginning Ending
Work in Process $120,000 $97,000
Finished Goods $118,000 $140,000
Additional Information
Direct Materials $310,000
Direct Labor $270,000
Labor Hours Worked 6,800 DLH
Estimated Labor Hours Worked 7,000 DLH
Manufacturing Overhead Incurred $254,000
Estimated Manufacturing Overhead $224,000
Cost of Goods sold | |||
Direct material used in production | 310,000 | ||
Direct labor | 270,000 | ||
Manufacturing OH Applied | 217,600 | (224000/7000*6800) | |
Total current manufacturing cost | 797,600 | ||
Plus: Beginning WIP | 120,000 | ||
Total WIP | 917,600 | ||
Less: Ending WIP | 97,000 | ||
Cost of Goods manufactured | 820,600 | ||
Plus : Beginning Finished goods | 118,000 | ||
Cost of goods available for sale | 938,600 | ||
Less: ending finished inventory | 140,000 | ||
Cost of goods sold | 798,600 | ||