Question

X Company, a manufacturer, incurred the following total costs during the year:

Direct materials	$41,948
Direct labor	92,798
Overhead	249,464

The following additional information was available:

• Revenue for the year was $85,878.
• Direct material purchases during the year were $32,170.
• Several jobs that cost a total of $17,255 were unfinished as of the end of the year.
• Several jobs that cost a total of $26,815 were finished during the year but not sold.
• There were no unfinished or finished jobs at the beginning of the year.

What was Cost of Goods Sold for the year?

Answer 1

Cost of goods sold = $340,140

Working

Schedule of Cost of Goods solf
Direct Material Used		$ 41,948
Direct labor		$ 92,798
Total Manufacturing overheads		$ 249,464
Total manufacturing Cost During the month		$ 384,210
Less: Work in progress Ending		$ 17,255
Cost of Goods Manufactured		$ 366,955
Less: Ending finished goods		$         26,815
Cost of goods sold		$      340,140