Chavez Corporation reported the following data for the month of July: Inventorie
ID: 341998 • Letter: C
Question
Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $ 27,000 $ 30,000 Work in process $ 16,000 $ 17,000 Finished goods $ 32,000 $ 47,000 Additional information: Raw materials purchases $ 66,000 Direct labor cost $ 91,000 Manufacturing overhead cost incurred $ 59,000 Indirect materials included in manufacturing overhead cost incurred $ 8,000 Manufacturing overhead cost applied to Work in Process $ 58,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for July is:
Explanation / Answer
Chavez Corportation Cost of goods manufactured For the year ended July Direct materials: Beginning Raw Materials 27,000.00 Add: Raw Material Purchases 66,000.00 Total Raw Materials Available 93,000.00 Less: Ending Raw Materials , December 2017 (30,000.00) Raw materials used in production 63,000.00 Less: Portion used for indirect materials 8,000.00 Direct materials Cost 55,000.00 Direct Labour 91,000.00 Manuf OH applied 58,000.00 Total Manfucature costs 2,04,000.00 Add : Begining Work In progess 16,000.00 2,20,000.00 Less :Ending Work In progess (17,000.00) Cost Goods Manufactured 2,03,000.00