Use the following data to determine the cost of goods manufactured: Beginning finished goods inventory $ 12,300 Direct labor 32,100 Beginning work in process inventory 8,700 General and administrative expenses 15,000 Direct materials used 42,000 Ending work in process inventory 10,500 Indirect labor 7,800 Ending finished goods inventory 11,000 Indirect materials 15,000 Depreciation—factory equipment 9,000

The Cost of Goods Manufactured is $104,100.By adding the direct material cost with the direct labor cost ,factory overhead,beginning work in progress and deducting the value obtained from the ending work in process value we get the The Cost of Goods Manufactured

Explanation:

The information Given in the question is  

Beginning finished goods inventory

$ 12,300

Direct labor

32,100

Beginning work in process inventory

8,700

General and administrative expenses

15,000

Direct materials used

42,000

Ending work in process inventory

10,500

Indirect labor

7,800

Ending finished goods inventory

11,000

Indirect materials

15,000

Depreciation - factory equipment

9,000

So the formula for the

Cost of Goods Manufactured = Direct Materials + Direct Labor + Factory Overhead + Beginning Work in Process - Ending Work in Process

Cost of Goods Manufactured = $42,000 + $32,100 (Indirect Labor + Indirect Materials + Depreciation Factory Equipment) + $8,700 − $10,500

Cost of Goods Manufactured = $42,000 + $32,100 + $7,800 + $15,000 + $9,000 + $8,700 − $10,500 = $104,100.

So,the Cost of Goods Manufactured = $104,100.

Solution and Explanation:

Total manufacturing heads = Indirect materials + Indirect labor + depreciation factory equipment

= 15000 + 7800 + 9000 = $31800

The cost of goods manufactured is as follows:

Particulars                            Amount ($)

Direct materials used               42000

add: direct labor                          32100

add: manufacturing overheads     31800

Manufacturing cost                      105900

add: begining goods in process

inventory                                         8700

less: ending goods in process

inventory                                      10500

Cost of goods manufactured         104100

Thus, the cost of goods that are manufactured is $104100

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