Answer:
Cost of goods manufactured 3,446,000
Cost of Goods Sold 3,454,000
Explanation:
First, we calcualte the values for the three main cost components:
materials, labor and overhead.
Raw materials
beginning 20,000
purchases 1,680,000
Ending (40,000)
Used in Produciton 1,660,000
Direct Labor 760,000
utilities 150,000
indirect labor 50,000
depreciation 400,000
operating expenses 420,000
total overhead 1,020,000
Total cost added:
materials 1,660,000
labor 760,000
overhead 1,020,000
total 3,440,000
Then, we calculate the COGM cost of goods manufactured.
WIP 18,000
cost added 3,440,000
WIP ending (12,000)
Cost of goods manufactured 3,446,000
And finally, the cost of goods sold.
Finished goods beginning 40,000
COGM 3,446,000
ending (32,000)
Cost of Goods Sold 3,454,000
