During the current year, Jules Company incurred the following product costs: Direct materials used in production $250,000; Direct labor $185,000; and Manufacturing overhead $245,500. Jules Company's beginning Work in Process Inventory was $20,000 and its ending Work in Process Inventory amounted to $30,000. What is the company's cost of finished goods manufactured for the year

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Business

Micaela Colon

4 August, 13:56

During the current year, Jules Company incurred the following product costs: Direct materials used in production $250,000; Direct labor $185,000; and Manufacturing overhead $245,500. Jules Company's beginning Work in Process Inventory was $20,000 and its ending Work in Process Inventory amounted to $30,000. What is the company's cost of finished goods manufactured for the year

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Brodie Hart · Answer 1

cost of goods manufactured = $670,500

Explanation:

Giving the following information:

Direct materials used in production $250,000

Direct labor $185,000

Manufacturing overhead $245,500.

Beginning Work in Process Inventory was $20,000

Ending Work in Process Inventory amounted to $30,000

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured = beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured = 20,000 + 250,000 + 185,000 + 245,500 - 30,000

cost of goods manufactured = $670,500