Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 9

Cost of goods manufactured and cost of goods sold The following table summarizes the beginning and ending inventories of Decatur Manufacturing, Inc., for the month of March:

	Feb. 28	Mar. 31
Raw materials	$ 53,600	$ 44,160
Work in process	114,080	103,680
Finished goods	75,520	67,040

Raw materials purchased during the month of March totaled $198,240. Direct labor costs incurred totaled $499,520 for the month. Actual and applied manufacturing overhead costs for March totaled $301,440 and $307,680, respectively. Over/ underapplied overhead is written off to cost of goods sold at the end of the year in December.

Required:

a.Calculate the cost of goods manufactured for March.

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b. Calculate the cost of goods sold for March.

Step 1 of 11

Cost of goods manufactured, and Cost of Goods Sold:

Cost of Goods Manufactured : The total cost for the manufacture of goods, include fixed and variable costs, which occur within a particular period of time and that are applied in the income statement to estimate cost of goods sold.