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.