Checker Clackers, Inc. manufactures clackers. Checker’s transactions and accounts included the following during June: Raw materials inventory, beginning $1,200 Raw materials inventory, ending 1,400 Work in process inventory, beginning 7,100 Work in process inventory, ending 6,800 Raw materials acquired 27,800 Cost of direct materials used in production 27,600 Sales commissions to sell clackers 2,100 Direct labor cost 20,000 Total manufacturing overhead 28,900 How much is cost of goods manufactured for June?

The cost of goods manufactured is $ 76,800

Explanation:

Computation of cost of goods manufactured

Raw Materials consumed

Opening raw materials inventory                     $    1,200

Add: Raw materials purchased                         $ 27,800

Less: Closing raw materials inventory              $ ( 1,400)

Raw materials consumed                                                                 $ 27,600

Direct labor Cost                                                                               $ 20,000

Manufacturing Overhead                                                                 $ 28,900        

Total manufacturing input                                                                $ 76,500  

Add: Opening work in process                                                        $    7,100

Less: Ending work in process                                                           $( 6,800)

Cost of goods manufactured                                                          $ 76,800

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