Question

ESSAY. Write your answer in the space provided or on a separate sheet of paper. 16) For the month of January, Year 1, Ghent Corporation had a beginning balance of $103,200 in work in process. During the month, the company added the following costs to work in process: direct materials, $90,900; direct labor, $54,000; and manufacturing overhead, $81,000. The ending amount of work in process was $37,400. What was the cost of goods manufactured for the period? Prepare a schedule that shows the calculation of the cost of goods manufactured.

Answer 1

Direct Material	$                                         90,900
Direct Labour	$                                         54,000
Total Manfacturing OH	$                                         81,000
Add:Beginning work in process	$                                      103,200
	$                              329,100
Less:Beginning work in process	$                                37,400
Cost of Goods Manufactured	$                                      291,700