Question

Horla Co's manufacturing operations recorded the following information for the month of March 20x9: Inventories Mar. 1.20x9 Mar. 31, 20x9 Direct materials $ 32390 $ 30582 Work in process 21420 12481 Finished goods 48034 69109 $93263 65291 Additional information for the month of March: Direct materials purchased Direct labour costs incurred Direct labour rate per hour Factory overhead rate per direct labour hour What were the cost of goods sold for the month of March? Select one a. 5160362 b. $247417 c.so d. $235281

Please show all steps so I can fully understand how to solve. thank you

Answer 1

Answer: d. $235281
Calculation of Cost of Goods Sold for march:
	Amount $	Amount $	Amount $
Work in process OB			21420
Direct mat.;
OB	32390
add:purchases	93263
Total available	125653
less:CB	30582
RM used		95071
Direct lab. Cost		65291
Factory ovehead, applied		87055		(65291*12/9)
Total Manufacturing Cost			247417
Total Work in Process			268837
Less: Work in Process CB			12481
Cost of Goods Manufactured			256356
Add:Finished Goods OB			48034
Total goods available for sale			304390
Less:Finished Goods CB			69109
Cost of goods sold			235281