Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Cost of direct materials used in production 69,000
Direct labor 27,000
Factory overhead 34,000
Work in process inventory, March 1: 15,000
Work in process inventory, March 31: 19,500
Finished goods inventory, March 1: 25,000
Finished goods inventory, March 31: 23,000
A) 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= 15,000 + 69,000 + 27,000 + 34,000 - 19,500= $125,500
B) Now, we can calculate the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 25,000 + 125,500 - 23,000= $127,500
