Question

Question 3: Access Ltd has the below inventory balances and other information at the end of Dec 2019. Balances Beginning Ending Direct Material Working in Process Inventory Finished Goods Inventory $ $ $ 15,750.00 2,850.00 2,200.00 $ $ $ 8,000.00 3,500.00 3,800.00 $ $ Other information Purchase of Direct Material Factory Supervisor Salaries Sales Salaries and Commissions Delivery Cost Sales Revenue Factory Utility Costs Factory Rent Direct Labor $ $ 50,000.00 5,750.00 7.250,00 1.400.00 115,000.00 1.200,00 17.750,00 26,000.00 $ $ $ $ Required: Please calculate the amount of cost of goods manufactured.

Answer 1

Answer- The amount of cost of goods manufactured = $107800.

Explanation-

ACCESS LTD.
COST OF GOODS MANUFACTURED
PARTICULARS	AMOUNT
	$
Direct Material:-
Beginning raw materials inventory	15750
Add-Raw materials purchases	50000
Raw Material available for use	65750
Less-Ending raw materials inventory	8000
Direct Material use	57750
Direct Labor	26000
Factory Overhead:-
Factory rent	17750
Factory utilities costs	1200
Factory Supervisor Salaries	5750
Total factory overhead	24700
Total manufacturing costs	108450
Add: Beginning work in process inventory	2850
Total cost of goods in process	111300
Less: Ending work in process inventory	3500
Cost of goods manufactured	107800