Question

Keeton Company had the following data:Cost of materials used $60,000Direct labor costs 58,000Factory overhead 33,000Work in process, beg. 29,000Work in process, end. 18,000Finished goods, beg. 32,000Finished goods, end 18,000Calculate the Cost of goods sold.

Answer 1

Answer:

Cost of goods sold = $ 176,000

Explanation:

For calculating the cost of goods sold, first we have to prepare the cost of goods manufactured.

Manufacturings Costs Incurred

Materials                                                                   $ 60,000

Direct labour                                                             $ 58,000

Factory overhead                                                     $ 33,000

Total manufacturing costs                                       $ 151,000

Add: Opening Inventory Work in process              $  29,000

Less: Ending work in process                                  $( 18,000)

Costs of goods manufactured                                  $ 162,000

to get the costs of goods sold this amount has to be adjusted for finished goods inventory changes.

Cost of Goods Manufactued                                     $ 162,000

Add; opening Inventory Finished Goods                 $ 32,000

Less: Ending Inventory Finished goods                   $ ( 18,000)

Cost of goods sold                                                    $ 176,000