Calculate the cost of goods sold using the following information:$\begin{array} { l c }
\text { Direct materials } & \$ 298,500 \
\text { Direct labor } & 132,000 \
\text { Factory overhead costs } & 264,000 \
\text { General and administrative expenses } & 85,500 \
\text { Selling expenses } & 48,800 \
\text { Work in Process inventory, January } & 1118,500 \
\text { Work in Process inventory, December 31 } & 125,900 \
\text { Finished goods inventory, January 1 } & 232,100 \
\text { Finished goods inventory, December 31 } & 238,700
\end{array}$
A) $701,900.
B) $680,500.
C) $772,600.
D) $674,600.
E) $687,100.

Question

Calculate the cost of goods sold using the following information:$\begin{array} { l c } 
\text { Direct materials } & \$ 298,500 \
\text { Direct labor } & 132,000 \
\text { Factory overhead costs } & 264,000 \
\text { General and administrative expenses } & 85,500 \
\text { Selling expenses } & 48,800 \
\text { Work in Process inventory, January } & 1118,500 \
\text { Work in Process inventory, December 31 } & 125,900 \
\text { Finished goods inventory, January 1 } & 232,100 \
\text { Finished goods inventory, December 31 } & 238,700
\end{array}$
A) $701,900.
B) $680,500.
C) $772,600.
D) $674,600.
E) $687,100.

Quizplus · Accepted Answer

Cost of goods sold can be calculated as follows:
Beginning inventory + cost of goods manufactured – ending inventory
= (Work in process inventory, January 1 + Direct materials + Direct labor + Factory overhead costs) + (Work in process inventory, December 31 – Work in process inventory, January 1) – (Finished goods inventory, December 31 – Finished goods inventory, January 1)
= (S1U1P1118,50S1S1P0 + S1U1P1298,50S1S1P0 + S1U1P1132,00S1S1P0 + S1U1P1264,00S1S1P0) + (S1U1P1125,90S1S1P0 – S1U1P1118,50S1S1P0) – (S1U1P1238,70S1S1P0 – S1U1P1232,10S1S1P0)
= S1U1P680,50S1S1P00 = $680,500

Calculate the Cost of Goods Sold Using the Following Information