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The following information has been taken from the perpetual inventory system of Imperial Mfg.Co.for the month ended September 30:

-The cost of finished goods manufactured in September is:

Question

[The following information applies to the questions displayed below.]
The following information has been taken from the perpetual inventory system of Imperial Mfg.Co.for the month ended September 30:
  
-The cost of finished goods manufactured in September is:

Quizplus · Accepted Answer

The cost of goods manufactured can be calculated as follows:
Direct Material used:
Beginning Raw Material Inventory $30,000
Add: Purchases of Raw Material $90,000
Raw material available for use $120,000
Less: Ending Raw Material Inventory $24,000
Direct material used $96,000
Direct Labor $70,000
Manufacturing overhead:
Indirect Material $8,200
Indirect Labor $12,500
Depreciation on M/C $12,000
Insurance on factory $1,800
Property taxes on factory $2,400
Total MOH $36,900
Total manufacturing cost:
Direct materials used $96,000
Direct labor $70,000
Manufacturing overhead $36,900
Total manufacturing cost $202,900
Add: Beginning work in process inventory $22,000
Less: Ending work in process inventory $45,900
Cost of goods manufactured $178,000

Therefore, the cost of finished goods manufactured in September is $180,000 (Cost of Goods Manufactured + Beginning Finished Goods Inventory – Ending Finished Goods Inventory = $178,000 + $12,000 – $10,000 = $180,000).

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