Question:
Wasik Company had the following inventory balances at the beginning and end of August 2010:
|
August 1
|
August 31
|
|
Raw Material Inventory
|
$ 58,000
|
$ 84,000
|
|
Work in Process Inventory
|
372,000
|
436,000
|
|
Finished Goods Inventory
|
224,000
|
196,000
|
All raw material is direct to the production process. The following information is also available about August manufacturing costs:
|
Cost of raw material used
|
$612,000
|
|
Direct labor cost
|
748,000
|
|
Manufacturing overhead
|
564,000
|
a. Calculate the cost of goods manufactured for August.
b. Determine the cost of goods sold for August.