Question

Chavez Corporation reported the following data for the month of July: Inventories: Raw materials Work in process Finished goods Beginning Ending $ 32,000 $32,500 $ 18,500 $22,000 $ 34,500 $49,500 Additional information: $68,500 $ 93,500 $61,500 Raw materials purchases Direct labor cost Manufacturing overhead cost incurred Indirect materials included in manufacturing overhead cost incurred Manufacturing overhead cost applied to Work in Process $ 9,000 $60,500 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for July is:

Answer 1

Chavez Corporation
Schedule of Cost of Goods Manufactured
Beginning raw materials inventory	$32,000
Add: Raw materials purchases	$68,500
Raw materials available	$100,500
Ending raw materials inventory	$32,500
	$68,000
Less: Deduct: Indirect materials included in manufacturing overhead	$9,000
Raw materials used	$59,000
Direct Labour Cost	$93,500
Manufacturing Overhead	$60,500
Total manufacturing costs	$213,000
Beginning work in process inventory	$18,500
Total work in process inventory	$231,500
Ending work in process inventory	$22,000
Cost of goods manufactured	$209,500