Question

Sandbagger Company has the following information for July:

Cost of direct materials used in production	$	34,000
Direct labor		44,000
Factory overhead		30,000
Work in process inventory, July 1		24,000
Work in process inventory, July 31		34,000
Finished goods inventory, July 1		26,000
Finished goods inventory, July 31		19,000

a. For July, determine the cost of goods manufactured.
$

b. For July, determine the cost of goods sold.
$

Answer 1

a)
	Bigining Work In Progress	$       24,000
	Direct Materials used	$       34,000
	Direct Labor	$       44,000
	Manufacturing Overhead	$       30,000
	Total Manufacturing cost Incurred during the year	$   1,32,000
	Less: Ending Work in progress	$       34,000
	Cost Of Goods Manufactured	$       98,000
b)	Cost Of Goods Manufactured	$       98,000
	Add:
	Finished goods inventory, July 1	$       26,000
	Less:
	Finished goods inventory, July 31	$       19,000
	Cost of goods sold	$   1,05,000