Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 53

Cost of Goods Manufactured

The following information pertains to the Petrie Company:

Prime costs	$180,000
Conversion costs	215,000
Direct materials used	95,000
Beginning work in process	75,000
Ending work in process	65,000

Required Determine the cost of goods manufactured.

Step 1 of 2

Prime cost is the sum of direct material cost and direct labor costs. Conversion costs is sum of direct labor costs and overhead costs.