Cost of Materials Used $45,000 Direct Labor costs $48,000
Factory Overhead $39,000
Work in Process, beg. $28,000
Work in Process, end. $18,000
Finished Goods,beg. $28,000
Finished Goods, end. $18,000
What is Cost of Goods Sold?
A) $152,000
B) $142,000
C) $10,000
D) $128,000

Question

Quizplus · Accepted Answer

The Cost of Goods Sold (COGS) is calculated as: Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods. Cost of Goods Manufactured is calculated as: Beginning Work in Process + Total Manufacturing Costs (Materials + Labor + Overhead) - Ending Work in Process. Total Manufacturing Costs = $45,000 + $48,000 + $39,000 = $132,000. Cost of Goods Manufactured = $28,000 + $132,000 - $18,000 = $142,000. COGS = $28,000 + $142,000 - $18,000 = $152,000.

Cost of Materials Used $45,000 Direct Labor Costs $48,000