Chavez Corporation reported the following data for the month of July Inventories

ID: 2594711 • Letter: C

Question

Chavez Corporation reported the following data for the month of July Inventories BeginningEnding s 27,800 $ 30,800 Raw raterials Work in process Finished goods 32,808 $ 47,688 Additional information: Raw taterials purchases Dtrect 1abor cost Monufacturing cverhead cost incurred Indirect eaterials irkluded in ranufacturing 5 66,998 5 59,698 averhess cost incurred Manufacturing overhead cost applied to Honk in Process 5 58,eee Any underapplied or overappled manufacturing overhead is closed out to cost of goods sold The cost of goods manufactured for Julty is S203.000 5215,000 $204 000 s2 16,000 ds Mavirg to another question will save this response

Explanation / Answer

Computation of cost of goods manufactured for July:

Direct material:

Beginning raw material

27,000

Add: Purchases

66,000

Less: Ending raw material

(30,000)

Raw material used in production:

63,000

Less: portion used fir indirect material

(8,000)

55,000

Direct labor

91,000

Manufacturing overhead applied to work-in progress

58,000

Total manufacturing costs

204,000

Add: Beginning work-in progress

16,000

Less: Ending work-in progress

(17,000)

Cost of goods manufactured

203,000