Question

9) Inventory balances for the Jameson Company in October 2018 are as follows: October 1, 2018 October 31, 2018 Raw materials $ 27,000 $ 21,000 Work in process 48,000 37,200 Finished goods 108,000 90,000 During October, purchases of direct materials were S. 36,000. Direct labor and factory overhead costs were $ 60,000 and $. 84,000 respectively. What is the cost of goods manufactured? a) $ 180,000 b) $ 186,000. c) $ 194,000 d) $ 196,800

Answer 1

Answer = d). $196,800 Working Notes: Jameson Company Schedule of Cost of goods Manufactured For the Month ended October 31, 2018 Direct Material Raw Material inventory Beginning $ 27,000 Add: Raw materials purchases 36,000 Total Raw materials available 63,000 Less: Raw materials inventory Ending $ 21,000 Raw Materials used in production Direct Labour Manufacturing overhead applied Total Manufacturing Costs Add: Work in process inventory Beginning Less: work in process inventory Ending Cost of goods Manufactured S $ $ $ $ S $ 42.000 60,000 84,000 186,000 48,000 37.200 196,800