Entin Corporation reported the following data for the month of January: Inventor
ID: 2380364 • Letter: E
Question
Entin Corporation reported the following data for the month of January:
Inventories:
Beginning
Ending
Raw materials
$32,000
$38,000
Work in process
$11,000
$17,000
Finished goods
$45,000
$47,000
Additional information:
Raw materials purchases
$65,000
Direct labor cost
$88,000
Manufacturing overhead cost incurred
$64,000
Indirect materials included in manufacturing overhead cost incurred
$3,000
Manufacturing overhead cost applied to Work in Process
$61,000
The cost of goods manufactured for January is:
Inventories:
Beginning
Ending
Raw materials
$32,000
$38,000
Work in process
$11,000
$17,000
Finished goods
$45,000
$47,000
Additional information:
Raw materials purchases
$65,000
Direct labor cost
$88,000
Manufacturing overhead cost incurred
$64,000
Indirect materials included in manufacturing overhead cost incurred
$3,000
Manufacturing overhead cost applied to Work in Process
$61,000
Explanation / Answer
Cost of Total Raw Materials Consumed
= Opening Stock + Purchases - Closing Stock
= 32000 + 65000 - 38000
= $59000
Direct Labour Cost = $88,000
Prime Cost = Raw materials Consumed + Direct Labour cost
= 59000 + 88000
= $147000
Factory Overhead Cost (Direct Manufacturing overhead cost incurred) = 64000 - 3000
= $ 61000
Cost of Work In Progress = At the beginning - At the end
= -$6000
Cost of Goods Manufactured = Prime Cost + Factory Overheads Cost + Cost of Work in Progress
= 147000 + 61000 + (-6000)
= $202,000
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