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Exercises (12 Pt ea.) 1. The Cake Factory has the following information for the month March. Determine the (a) cost of goods manufactured, and (b) cost of goods sold. Cost of materials placed in production Direct labor Factory overhead Work in process, March 1 Work in process, March 31 Finished goods inventory, March 1 Finished goods inventory, March 31 $69,000 25,000 34,000 17.000 18,500 23.000 ANS: (a) Work in process inventory, March 1 Cost of materials placed in production Direct labor Factory overhead Total manufacturing costs added Total manufacturing costs Less: Work in process inventory, March 31 Cost of goods manufactured (b) Finished goods inventory, March 1 Cost of goods manufactured Cost of finished goods available for sale Less: Finished good inventory, March 31 Cost of goods sold

Answer 1

Answer

[a]

WIP Mar 1		$17,000
Cost of materials placed in production	$69,000
Direct Labor	$25,000
Factory Overhead	$34,000
Total manufacturing cost added		$128,000
Total manufacturing costs		$145,000
Less: WIP Mar 31		$18,500
Cost of Goods manufactured		$126,500

[b]

Finished goods Mar 1		$21,000
Cost of Goods manufactured		$126,500
Cost of finished goods available for sale		$147,500
Less: Finished goods Mar 31		$23,000
Cost of Goods Sold		$124,500