Calculation of Cost of Goods sold in Perpetual Inventory System.
The following information has been taken from the perpetual inventory system of Select Mfg. Co. for the month ended August 31:
|
Purchases of direct materials
|
$50,000
|
|
Direct materials used
|
40,000
|
|
Direct labor costs assigned to production
|
15,000
|
|
Manufacturing overhead costs incurred (and applied)
|
25,000
|
|
Balances in inventory
|
Aug 31
|
Aug 1
|
|
Materials
|
$ ?
|
$15,000
|
|
Work-in-Progress
|
55,000
|
37,000
|
|
Finished Goods
|
50,000
|
33,000
|
a. What is the cost of finished goods manufactured in August?
b. What is the cost of goods sold manufactured in August?