Question

The following information is available for the first month of operations of Kleinfeld Company, a manufacturer of wall clocks:

Sales	$1,460,300
Beginning Work in process	82,400
Beginning Finished goods inventory	319,250
Materials inventory, beginning	6,300
Indirect labor	22,700
Factory depreciation	16,000
Materials purchased	88,400
Current period manufacturing cost	223,200
Materials inventory, ending	15,500
Ending Finished Goods inventory	102,400
Ending Work in process	43,200

Using the above information, determine the cost of goods sold:

Answer 1

Answer:

Cost of Goods Manufactured = Beginning Work in Process + Manufacturing Cost - Ending Work in Process
Cost of Goods Manufactured = $82,400 + $223,200 - $43,200
Cost of Goods Manufactured = $262,400

Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory
Cost of Goods Sold = $319,250 + $262,400 - $102,400
Cost of Goods Sold = $479,250