Determining Ybarra Products began operations in 2017. During its first year, the

Question

Determining Ybarra Products began operations in 2017. During its first year, the company purchased raw ma- terials costing $84,000 and used $63,000 of those materials in the production of its products. The company's manufacturing operations also incurred labor costs of $58,000 and overhead costs of S28.000. At year end 2017, Ybarra had $19,000 of partially completed product in work-in-process inventory and $35,000 in finished goods inventory. What was Ybarra Company's cost of goods sold in 2017?

Explanation / Answer

Calculate cost of goods sold :

Material used 63000 Direct labour 58000 Manufacturing overhead applied 28000 Total manufacturing cost 149000 Less: Ending Work in process inventory (19000) Cost of goods manufactured 130000 Less: Ending finished goods inventory (35000) Cost of goods sold 95000

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