Question

Horla Co's manufacturing operations recorded the following information for the month of March 20x9: Inventories Mar. 7, 20x9 Mar. 31 20x9 Direct materials $ 33221 $ 26151 Work in process 15450 13078 Finished goods 47775 68616 Additional information for the month of March: Direct materials purchased $81849 Direct labour costs incurred 64020 11 Direct labour rate per hour Factory overhead rate per direct labour hour 9 What were the cost of goods sold for the month of March? Select one Oa. $152939 Ob $205319 O c. $186850 Od. $0 Check

Answer 1

The correct option is 'c' - the cost of goods sold is 186850. All the calculations are shown in the image attached.

Cost Sheet PARTICULARS Direct Material * Direct Labour PRIME COST Factory Overhead* TOTAL MANUFACTURING COST Addo work in opening process Lesso osing Work in process COST OF GOODS MANUFACTUREA Add po opening finished goods Lessé closing finished goods COST OF GOODS SOLD Amt 88919 64020 152939 52386 205319 154.50 220769 13078 207691 47775 255466 6866 o closi 186850 * Direct Maten'al consumeda opening Dived Material + Purchases - closing Direct Matenda. - 33221 +81849 – 26157 -> 88919 Factory Overhead overhead rate X Factory direct labour hours Direct labour hours. Direct labour costs inwmeel Direct labour rate per hour ** =64020 558 $820 U " Factory Overhead . =) 5820 x 52380 7