Question

Item	Beginning of Year	End of Year
Raw Materials Inventory	$15,000	$25,000
Work in Process Inventory	$40,000	$31,000
Finished Goods Inventory	$10,000	$25,000
	During the Year
Purchases of Raw Material	$82,000
Direct Labor Costs	$95,000
Manufacturing Overhead	$50,000

Answer……………………………………..Calculations
$__________1. Direct Materials Used ________________________________
$__________2. Total Manufacturing Costs Incurred ____________________________
$__________3. Total Manufacturing Cost__________________
$__________4. Cost of Goods Manufactured___________________________
$__________5. Cost of Goods Sold___________________________________

Answer 1

Answer:

1. Calculation of direct material used:

Direct material used = (Beginning inventory of raw material + Purchase of raw materials - Ending inventory of raw materials)

= $15,000 + $82,000 - $25,000

= $72,000

2. Calculation of total manufacturing cost incurred

Total manufacturing cost incurred = Direct material used + Direct labor cost

   = $72,000 + $95,000

= $167,000

3. Calculation of total manufacturing cost:

Total manufacturing cost = Direct material used + Direct labor cost + Manufacturing overhead

   = $72,000 + $95,000 + $50,000

= $217,000

4. Calculation of cost of goods manufactured:

Cost of goods manufactured = (Total manufactuirg cost + Begining work in process inventory - Ending work in process inventory)

= $217,000 + $40,000 - $31,000

= $226,000

5. Calculation of cost of goods sold:

Cost of goods sold = (Cost of goods manufactured + Beginning inventory of finished goods - Ending Inventory of finished goods)

   = $226,000 + $10,000 - $25,000

     = $211,000