Cost of Goods Sold, Cost of Goods Manufactured Glenville Company has the following information for April:
Cost of direct materials used in production $48,000
Direct labor 57,000
Factory overhead 34,000
Work in process inventory, April 1 35,000
Work in process inventory, April 30 40,000
Finished goods inventory, April 1 25,000
Finished goods inventory, April 30 16,000
For April, determine
A. The cost of goods manufactured.
B. The cost of goods sold.
Using the data given, prepare a statement of Cost of Goods Manufactured.
Glenville Company
Statement of Cost of Goods Manufactured
Work in process inventory, April 1 Y $72,300
Cost of direct materials used in production $280,000
Direct labor 324,000
Factory Overhead 188,900

Instructions are below.

Explanation:

Giving the following information:

Cost of direct materials used in production $48,000

Direct labor 57,000

Factory overhead 34,000

Work in process inventory, April 1= 35,000

Work in process inventory, April 30= 40,000

Finished goods inventory, April 1= 25,000

Finished goods inventory, April 30= 16,000

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= 35,000 + 48,000 + 57,000 + 34,000 - 40,000

cost of goods manufactured= $134,000

B. To calculate the cost of goods sold, we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 25,000 + 134,000 - 16,000

COGS= $143,000

C. Prepare a statement of Cost of Goods Manufactured.

Work in process inventory, April 1 Y $72,300

Cost of direct materials used in production $280,000

Direct labor 324,000

Factory Overhead 188,900

cost of goods manufactured= $865,200

answer; (consensus);