# Cost of goods sold, cost of goods manufactured Timbuk 3 Company has the following information for March: Cost of direct materials used in production \$21,000 Direct labor 54,250 Factory overhead 35,000 Work in process inventory, March 1 87,500 Work in process inventory, March 31 92,750 Finished goods inventory, March 1 36,750 Finished goods inventory, March 31 42,000 For March, determine (a) the cost of goods manufactured and (b) the cost of goods sold.

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

#### Solutions

Chapter
Section
Chapter 18, Problem 18.5APE
Textbook Problem

## Cost of goods sold, cost of goods manufacturedTimbuk 3 Company has the following information for March: Cost of direct materials used in production \$21,000 Direct labor 54,250 Factory overhead 35,000 Work in process inventory, March 1 87,500 Work in process inventory, March 31 92,750 Finished goods inventory, March 1 36,750 Finished goods inventory, March 31 42,000 For March, determine (a) the cost of goods manufactured and (b) the cost of goods sold.

Expert Solution

(a)

To determine

Cost of goods sold:

Cost of goods sold is the accumulate amount of all direct cost incurred in manufacturing the goods or the products which has been sold during a period. Cost of goods sold involves direct material, direct labor, and manufacturing overheads.

Cost of goods manufactured:

Cost of goods manufactured refers to the cost incurred for making a product that is available for sales at the end of the accounting period.

The cost of goods manufactured.

### Explanation of Solution

The cost of goods manufactured is determined as follows:

 Particulars Amount (in \$) Amount (in \$) Work in progress inventory, March 1 87,500 Cost of direct materials used in production 21,000 Direct labor 54,250 �...
Expert Solution

(b)

To determine

The cost of goods sold.

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