Question

The Falcon Company does not maintain backup documents for its computer files. In June, some of the current data were lost, and you have been asked to help reconstruct the data. The following beginning balances on June 1 are known: Direct Materials Inventory $ 12,700 Work-in-Process Inventory 5,200 Finished Goods Inventory 12,700 Manufacturing Overhead Control 23,500 Accounts Payable 6,700 Reviewing old documents and interviewing selected employees have generated the following additional information: The production superintendent's job cost sheets indicated that materials of $3,300 were included in the June 30 Work-in-Process Inventory. Also, 370 direct labor-hours had been paid at $5.00 per hour for the jobs in process on June 30. The Accounts Payable account is only for direct material purchases. The clerk remembers clearly that the balance in the Accounts Payable on June 30 was $8,700. An analysis of canceled checks indicated payments of $47,000 were made to suppliers during June. Payroll records indicate that 5,900 direct labor-hours were recorded for June. It was verified that there were no variations in pay rates among employees during June. Records at the warehouse indicate that the Finished Goods Inventory totaled $19,000 on June 30. Another record kept manually indicates that the Cost of Goods Sold in June totaled $99,000. The predetermined overhead rate was based on an estimated 75.000 direct labor-hours for the year and an estimated $375,000 in manufacturing overhead costs. What is the Cost of Goods Manufactured for June?
a. $103, 500.
b. $99,000.
c. $108,000.
d. $115,000.

Answer 1

Answer:

The Cost of Goods Manufactured for June is $105,300

Explanation:

In order to calculate the Cost of Goods Manufactured for June we would have to use the following formula:

Finished goods inventory+cost of goods manufactured-Finished goods inventory totaled at the month end=cost of goods sold

Therefore, cost of goods manufactured for june=$99,000-$12,700+$19,000

cost of goods manufactured for june=$105,300

The Cost of Goods Manufactured for June is $105,300