Beg. of year
end of year
raw materials inventory
$26000
$30852
work in process inventory
$35000
$32867
finished goods inventory
$14000
$28862
purchases of dm
$73000
direct labor
$41484
indirect labor
$4
insurance on plant
$1
depreciation - plant building and equipment
$12747
repairs and maintenance - plant
$4869
marketing expenses
$76000
general & administrative expenses
$27354
what is cost of goods sold?

$164,519

Explanation:

Direct Material used = Beg. Raw Materials Inventory + Purchases of DM - End. Raw Materials Inventory

                                 = $26000 + $73000 - $30852

                                 = $68,148

Direct labor cost = $41,484

Manufacturing overhead = Indirect Labor + Insurance on plant + Depreciation - plant building and equipment + Repairs and maintenance - plant

                                         = $40000 + $10,000 + $12747 + $4869

                                         = $67,616

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

                                          = $68,148 + $41,484 + $67,616

                                          = $177,248

Cost of goods manufactured:

= Total manufacturing cost + Beg. Work in process inventory - End. Work in process inventory

= $177,248 + $35000 - $32867

= $179,381

Cost of goods sold = Cost of goods manufactured + Beg. Finished goods inventory - End. Finished goods inventory

                                = $179,381 + $14000 - $28862

                                = $164,519

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