Question

teionBestor-assignment-take&inprogress-false Calculator Cost of Goods Sold In September, Lauren Ashley Company purchased materials costing $240,000 and incurred direct labor cost of $140,000. Overhead totaled $400,000 for the month. Information on inventories was as follows: September 1 September 30 Materials $120,000 $130,000 Work in process 80,000 90,000 Finished goods 70,000 65,000 Required: What was the cost of goods sold for September? Next Previus 31 AM hp

Answer 1

first let us know the cost of direct materials used.

purchases	240,000
add:beginning inventory of materials	120,000
less:ending inventory of materials	(130,000)
direct materials used	230,000

now,

let us know the cost of manufactured.

direct materials used	230,000
add: direct labor	140,000
add: beginning inventory of work in processs	80,000
less: ending inventory of work in process	(90,000)
cost of goods manufactured	360,000

now,

cost of goods sold:

cost of goods manufactured	360,000
add: opening balance of finished goods	70,000
less closing balance of finished goods	(65,000)
cost of goods sold for september	365,000