?

Managerial Accounting

Free Version

Upgrade subject to access all content

Difficult

Dobbit: Compute Cost of Goods Sold From Activity

MGRACT-3BRMEF

Dobbit Inc. would like you to figure out their cost of goods sold for last month. All units were completed during the period.

Information for recent month:
Raw materials Inventory, beginning balance \$20,000
Work-In-Process Inventory, beginning balance \$26,000
Finished Goods Inventory, beginning balance \$30,000
Purchases of raw materials \$300,000
Raw materials Inventory, ending balance \$6,000
Factory occupancy costs \$45,000
Direct labor payroll \$100,000
Indirect materials used \$10,000
Other manufacturing overhead \$56,000
units produced 10,000
units sold 9,000