Compute the Cost of Goods Sold for 2019 using the following information: Direct Materials, Jan. 1, 2019 $ 44,000 Work-in-Process, Dec. 31, 2019 68,500 Direct Labor 52,500 Finished Goods, Dec. 31, 2019 113,000 Finished Goods, Jan. 1, 2019 140,000 Manufacturing Overhead 73,500 Direct Materials, Dec. 31, 2019 51,000 Work-in Process, Jan. 1, 2019 95,000 Purchases of Direct Material 83

$255,500

Explanation:

The computation of Cost of Goods Sold is shown below:-

Direct materials used                            $76,000

($83,000 + $44,000 - $51,000)

Direct labor                                            $52,500

Manufacturing overhead                       $73,500

Total manufacturing costs                                     $202,000

Add: Work in process inventory, beginning         $95,000

Total                                                                         $297,000

Less: Work in process inventory, ending              $68,500

Cost of goods manufactured                                  $228,500

Add: Finished goods inventory, January 1             $140,000

Cost of goods available for sale                             $368,500

Less: Finished goods inventory, December 31     $113,000

Cost of goods sold                                                 $255,500