Cost of Goods Sold, Cost of Goods Manufactured

Glenville Company has the following information for April:

Cost of direct materials used in production $52,000
Direct labor 67,000
Factory overhead 21,000
Work in process inventory, April 1 38,000
Work in process inventory, April 30 48,000
Finished goods inventory, April 1 22,000
Finished goods inventory, April 30 17,000

Required:
a. For April, determine the cost of goods manufactured.
b. For April, determine the cost of goods sold.

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facundobuzzetti facundobuzzetti · Answer 1 · 2020-10-08T02:13:17+02:00

Answer:

cost of goods manufactured= $130,000

COGS= $135,000

Explanation:

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 38,000 + 52,000 + 67,000 + 21,000 - 48,000

cost of goods manufactured= $130,000

Now, we can determine the cost of goods manufactured:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 22,000 + 130,000 - 17,000

COGS= $135,000