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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Cost of goods manufactured for a manufacturing company

The following information is available for Ethtridge Manufacturing Company for the month ending July 31:

Cost of direct materials used in production $1,150,000
Direct labor 966.000
Work in process inventory, July 1 316,400
Work in process inventory, July 31 355,500
Total factory overhead 490.500

Determine Ethtridge’s cost of goods manufactured for the month ended July 31.

To determine

Cost of goods manufactured:

Cost of goods manufactured refers to the costs incurred for manufacturing the goods during the period. A statement of cost of goods manufactured is prepared in order to determine the cost of goods manufactured, which in turn is used to determine the cost of goods sold, and prepare the income statement.

To determine: The cost of goods manufactured of Company E for the month ended July 31.

Explanation

The cost of goods manufactured is determined as follows:

Particulars $ $
Work in process inventory, July 1     (1) $ 316,400
Add: Manufacturing costs incurred during July
     Cost of direct materials used 1,150,000
     D...

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