Answered

Discover a wealth of information and get your questions answered on IDNLearn.com. Our experts provide timely, comprehensive responses to ensure you have the information you need.

Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $ 36,000 $ 34,500 Work in process $ 20,500 $ 26,000 Finished goods $ 36,500 $ 51,500 Additional information: Raw materials purchases $ 70,500 Direct labor cost $ 95,500 Manufacturing overhead cost incurred $ 63,500 Indirect materials included in manufacturing overhead cost incurred $ 9,800 Manufacturing overhead cost applied to Work in Process $ 62,500 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for July is:

Sagot :

Facundobuzzettiidn

Answer:

Cost of goods manufactured= $214,700

Explanation:

First, we need to calculate the direct material used:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 36,000 + 70,500 - 34,500

Direct material used= $72,000

Now, we can determine the cost of goods manufactured:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 20,500 + 72,000 + 95,500 + (62,500 - 9,800) - 26,000

cost of goods manufactured= $214,700

We value your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. IDNLearn.com is your go-to source for accurate answers. Thanks for stopping by, and come back for more helpful information.