Question

Barry Company manufactures coats. The company accounting records during February show: Factory utilities 5950; Direct materials used in production - $21,650: Direct materials purchased during the month - $23.000: Direct labor costs - $15.210: Wages paid to workers providing direct labor - 516,100: Depreciation on factory equipment - $1,250; Insurance covering factory facilities - $1,100; Marketing expenses - $4,700: Factory supervisor salary - $3.500: Indirect manufacturing materials used - 51.090: Insurance covering administrative facilities - 52.100: Depreciation on administrative office furnishings - 55.500: Corporate executive salaries - 515,000. if the beginning balance of WIP in February is 50 and the ending balance of WIP is $3,000, what is the cost of goods manufactured for February?

Answer 1

	Statement of cost of goods manufactured
	Direct materials				$ 21,650.00
	Direct labor				$ 15,210.00
	OH costs:
	Factory utilities			$      950.00
	Depreciation on factory equipment			$   1,250.00
	Insurance covering factory facilities			$   1,100.00
	Factory supervisor salary			$   3,500.00
	Indirect manufacturing material			$   1,090.00
	Indirect Labor			$ 16,100.00	$ 23,990.00
	Total manufacturing cost				$ 60,850.00
Less:	Ending balance of WIP				$   3,000.00
	Cost of goods manufactured				$ 57,850.00

If you find this incorrect, try using the answers: a) $ 41750 b) $ 42640