Question

The following information is available for Ethtridge Manufacturing Company for the month ending July 31:

Cost of direct materials used in production $1,150,000
Direct labor 966,000
Work in process inventory, July 1 316,400
Work in process inventory, July 31 355,500
Total factory overhead 490,500

Required:
Determine Ethtridge's cost of goods manufactured for the month ended July 31.

Answer 1

Statement of cost of goods manufactured

Work in process inventory, July 1 $316,400

Add: Cost of direct materials used in production $1,150,000

Direct labor $966,000

Total factory overhead $490,500

Total manufacturing cost incurred $2,606,500

Total manufacturing costs $2,922,900

Less: Work in process inventory, July 31 $355,500

Cost of goods manufactured $2,567,400