Question

A company had the following operations: Help Inventories beginning balance ending balance Raw materials (all direct) $34,000 $37,500 Work in process $22,500 $15.000 Finished goods $67,500 $88,000 Additional information: Raw materials purchased $ 105,000 Direct manufacturing labor payroll (DL cost) $ 75,000 Direct manufacturing wage rate per hour $ 12/DLH Predetermined overhead rate per direct labor hour $ 16/DLH How much was the Raleigh's unadjusted cost of goods sold for the period? (All answers are whole numbers -- unless specified otherwise. You should NOT include the S sign or a comma. Eg you should by 1000 for one thousand. Negative numbers should be added with a minus sign, e.g.-1000 for a decrease or loss of one thousand Cost of goods sold (unadjusted) - $

Answer 1

Calculate unadjusted cost of goods sold

Direct material used (34000+105000-37500)	101500
Direct labor	75000
Manufacturing overhead (75000/12*16)	100000
Total manufacturing cost	276500
Beginning WIP	22500
Less: Ending WIP	-15000
Cost of goods manufactured	284000
Beginning finished goods	67500
Less; Ending finished goods	-88000
Cost of goods sold (unadjusted)	263500