Question

The following accounts are from last year’s books at Sharp Manufacturing:

Raw Materials
Bal	0	(b)	155,600
(a)	168,000
	12,400

Work In Process
Bal	0	(f)	516,400
(b)	132,800
(c)	169,600
(e)	214,000
	0

Finished Goods
Bal	0	(g)	468,000
(f)	516,400
	48,400

Manufacturing Overhead
(b)	22,800	(e)	214,000
(c)	26,800
(d)	157,600
			6,800

Cost of Goods Sold
(g)	468,000

Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year?

Answer 1

Ans-Calculating cost of goods manufactured:-

Beginning work in process	0
Direct material	132,800
Direct labor	169,600
Manufacturing overhead	214,000
Less: Ending work in process	0
Cost of goods manufactured	516,400

Or

Cost of goods manufactured= Cost of goods sold beginning balance +Finishing goods ending balance

=468,000+48,400

=516,400

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