Calculating the cost of goods manufactured


Response to the following problem:

Davidson Company has the following information for August:

Cost of direct materials used in production ..................$60,000

Direct labor ....................................................... 90,000

Factory overhead ................................................ 44,000

Work in process inventory, August 1 ........................ 20,000

Work in process inventory, August 31 ....................... 16,000

Finished goods inventory, August 1 ......................... 36,000

Finished goods inventory, August 31 ........................ 20,000

For August, determine

(a) The cost of goods manufactured and

(b) The cost of goods Sold.

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Cost Accounting: Calculating the cost of goods manufactured
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