McMahon Corporation has provided the following data regarding last month’s opera
ID: 2336145 • Letter: M
Question
McMahon Corporation has provided the following data regarding last month’s operations:
Direct materials 23,000
Direct labor 58,000
Manufacturing overhead applied to Work in Process 92,000
Begin End
Work in Process (WIP) Inventory 56,000 69,000
Finished Goods Inventory 33,000 36,000
Complete the following table to calculate the Cost of Goods Sold:
Direct materials
+ Direct labor
+ Manufacturing overhead applied to WIP
Total manufacturing costs
Add: Beginning WIP
Less: Ending WIP
Cost of Goods Manufactured
Beginning Finished Goods Inventory
Add: Cost of Goods Manufactured
Less: Ending Finished Goods Inventory
Cost of Goods Sold
Direct materials
+ Direct labor
+ Manufacturing overhead applied to WIP
Total manufacturing costs
Add: Beginning WIP
Less: Ending WIP
Cost of Goods Manufactured
Beginning Finished Goods Inventory
Add: Cost of Goods Manufactured
Less: Ending Finished Goods Inventory
Cost of Goods Sold
Explanation / Answer
Direct materials
+ Direct labor
+ Manufacturing overhead applied to WIP
Total manufacturing costs
Add: Beginning WIP
Less: Ending WIP
Cost of Goods Manufactured
Beginning Finished Goods Inventory
Add: Cost of Goods Manufactured
Less: Ending Finished Goods Inventory
Direct materials
$23,000+ Direct labor
$58,000+ Manufacturing overhead applied to WIP
$92,000Total manufacturing costs
$173,000Add: Beginning WIP
$56,000Less: Ending WIP
$69,000Cost of Goods Manufactured
$160,000Beginning Finished Goods Inventory
$33,000Add: Cost of Goods Manufactured
$160,000Less: Ending Finished Goods Inventory
$36,000 Cost of goods sold $157,000