Textbook Problem

Cost of Direct Materials, Cost of Goods Manufactured, Cost of Goods Sold

Bisby Company manufactures fishing rods. At the beginning of July, the following information was supplied by its accountant:

During July, the direct labor cost was $43,500, raw materials purchases were $64,000, and the total overhead cost was $108,750. The inventories at the end of July were:

Required:

1. 1. What is the cost of the direct materials used in production during July?
2. 2. What is the cost of goods manufactured for July?
3. 3. What is the cost of goods sold for July?