I keep getting 137,500 I want to make sure that is right The following data pert
ID: 2543846 • Letter: I
Question
I keep getting 137,500 I want to make sure that is right
The following data pertain to the Best Co.: Materials inventory, 1/1/16................. $54,000 Materials inventory, 12/31/16............... 40,500 Materials purchases......................... 81,500 Work in process inventory, 1/1/16........... 28,500 Work in process inventory, 12/31/16......... 40,500 Direct labor................................ 34,000 Manufacturing overhead...................... 52,000 Finished goods inventory, 1/1/16............ 39,500 Finished goods inventory, 12/31/16.......... 11,000 Cost of goods sold should be:
Explanation / Answer
No, Answer is $197500
Particulars Amt Opening Material 54000 Add: Purchases 81500 Less: Closing stock 40500 Material Consumed 95000 Direct Labor 34000 Manufactured Overhead 52000 Gross Production Cost 181000 Add: Opening WIP 28500 Less: Closing WIP 40500 Cost of Goods Produced 169000 Add: Opening FG 39500 Less: Closing FG 11000 Cost of Goods Sold 197500