To calculate the cost of goods manufactured for the month, we need to use the following formula:
Cost of Goods Manufactured = Direct Materials + Direct Labor + Manufacturing Overhead + Beginning Work in Process Inventory - Ending Work in Process Inventory
Plugging in the values given:
Cost of Goods Manufactured = RM27,000 + RM34,000 + RM44,000 + RM16,000 - RM9,000
Cost of Goods Manufactured = RM110,000
Therefore, the cost of goods manufactured for the month of August was RM110,000.
QUESTION 4
Green Company's costs for the month of August were as follows: direct materials. RM27,000; direct labor, RM34,000; selling, RM14,000; administrative, RM12,000; and manufacturing overhead, RM44,000. The beginning work in process inventory was RM16,000 and the ending work in process inventory was RM9,000. What was the cost of goods manufactured for the month? (5 marks)
1 answer