Flow of costs through a manufacturer’s inventory accounts
Consider the following data for a manufacturer:
|
Beginning of Year |
End of Year |
|
|
Direct materials inventory |
$ 29,000 |
$ 32,000 |
|
Work in process inventory |
44,000 |
37,000 |
|
Finished goods inventory |
19,000 |
24,000 |
|
Purchases of direct materials |
77,000 |
|
|
Direct labor |
87,000 |
|
|
Manufacturing overhead |
45,000 |
Requirement
1. Compute cost of goods manufactured and cost of goods sold.