Chapter 2, Problem 53P

### Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

Chapter
Section

### Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
105 views

# Cost of Direct Materials, Cost of Goods Manufactured, Cost of Goods SoldBisby 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. What is the cost of the direct materials used in production during July? 2. What is the cost of goods manufactured for July? 3. What is the cost of goods sold for July?

1.

To determine

Calculate the amount of direct material used in production for the month of July.

Explanation

Direct Materials Used In Production:

Direct materials used in production determine the variance between the amount of materials used for production and the amount of purchased materials.

Use the following formula to calculate direct material used in production:

Direct materials used in production=(Begining inventory of materials+PurchasesEnding inventory of materials)

2.

To determine

Calculate the amount of cost of goods manufactured for July.

3.

To determine

Calculate the amount of cost of goods sold for July.

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started