Asked Feb 13, 2020

Cost of Goods Sold

In September, Lauren Ashley Company purchased materials costing $150,000 and incurred direct labor cost of $140,000. Overhead totaled $400,000 for the month. Information on inventories was as follows:

  September 1   September 30
Materials $120,000   $130,000
Work in process 80,000   90,000
Finished goods 70,000   65,000


What was the cost of goods sold for September?


Expert Answer

Step 1: Compute the direct materials used:

Accounting homework question answer, step 1, image 1

Step 2: Compute the total manufacturing costs:

Accounting homework question answer, step 2, image 1

Step 3: Compute the cost of goods manufactured:

Accounting homework question answer, step 3, image 1


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