Question

Holmstrom Corporation has provided the following data concerning last month’s operations.

Direct materials	$	14,000
Direct labor cost	$	58,000
Manufacturing overhead applied to Work in Process	$	79,000
Cost of Goods Manufactured	$	145,000

	Beginning			Ending
Work in process inventory	$	47,000		$	53,000
Finished goods inventory	$	41,000		$	50,000

How much is the cost of goods sold on the Schedule of Cost of Goods Sold?

Multiple Choice

• $150,000

• $176,000

• $144,000

• $136,000

Answer 1

Answer)

Calculation of cost of goods sold

Particulars	Amount (In $)
Direct Material	14,000
Add: Direct Labor cost	58,000
Prime cost	72,000
Add: Manufacturing overheads	79,000
Add: Opening work in progress inventory	47,000
Less: Closing work in progress inventory	53,000
Cost of Goods manufactured	145,000
Add: Opening stock of finished goods	41,000
Less : closing stock of finished goods	50,000
Cost of goods sold	136,000

Therefore cost of goods sold is $ 136,000