Question

Sanjay Corporation incurred the following costs while manufacturing its product: Materials used in product $120,800 Advertising expense $45,350 Depreciation on plant 62,000 Property taxes on plant 19,100 Property taxes on warehouse 8,310 Delivery expense 21,000 Labour costs of assembly-line workers 110,600 Sales commissions 35,300 Factory supplies used 25,200 Salaries paid to sales clerks 50,100 Work in process inventory was $10,100 at January 1 and $14,100 at December 31. Finished goods inventory was $60,700 at January 1 and $50,800 at December 31.

Calculate the cost of goods manufactured.

(it is very important that this is correct thank you)

Answer 1

Ans.

Cost of Goods Manufactured:-

Cost of goods manufactured is total cost of production. The cost of goods manufactured is the cost of all goods completed completed during the period. The cost of goods manufactured is total manufacturing cost i.e., direct material, direct labour and factory overhead. After that add beginning work in process inventory and subtracting ending work in process inventory.

Calculate the cost of goods manufactured.

Sanjay Corporation

Cost of Goods Manufactured

Particulars	Amount	Amount
Materials used in product		$120,800
Labor cost of assembly-line workers		$110,600
Factory overhead:
Depreciation on plant	$62,000
Property taxes on plant	$19,100
Factory supplies used	$25,200
Total factory overhead		$106,300
Total manufacturing costs		$337,700
Add: Work in process inventory, Jan. 1		$10,100
Total cost of work in process		$347,800
Less:- Work in process inventory, Dec. 31		$14,100
Cost of goods manufactured		$333,700

The cost of goods manufactured is $333,700.

Sanjay Corporation

Cost of Goods Sold

Particular	Amount
Beginning finished goods, Jan.1	$60,700
Cost of goods manufactured	$333,700
Cost of goods available for sale	$394,400
Less: Ending finished goods, Dec. 31	$50,800
Cost of goods sold	$343,600

The cost of goods sold is $343,600.