Overhead charges for depreciation insurance utilities and


Question - Irresistable Art produces collectible pieces of art. The company's raw Material Inventory acount includes the costs of both direct & indirect materials. Account balances for the company at the beginning and end of July2012 follows:

Raw Material Inventory           $93,200 (beg.)            $69,600 (end)
Work in Process                      146,600                      120,000
Finished Goods                        72,000                       104,800

During the month, the company purchased $656,000 of raw material; direct material used during the period amounted to $504,000. Factory payroll costs for July were $788,000, of which 75% was related to direct labor. Overhead charges for depreciation, insurance, utilities, and maintenance totaled $600,000 for July.

What is the cost of goods manufactured?

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Accounting Basics: Overhead charges for depreciation insurance utilities and
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