Use the information below to answer questions Direct labour...................₦50 000 Beginning work-in-progress......₦4 000 Raw materials used................

Use the information below to answer questions Direct labour...................₦50 000

Beginning work-in-progress......₦4 000

Raw materials used..............₦18 000

Indirect labour.................₦4 000

Ending finished goods...........₦16 000

Ending work-in-progress.........₦9 000

Factory supplies used...........₦7 000

Selling expenses................₦25 000

Beginning finished goods........₦21 000

Other factory overheads.........₦19 000What is the cost of goods manufactured?

Answer Details

The cost of goods manufactured is the total cost incurred in the production of finished goods during a particular period. It can be calculated by adding the total manufacturing costs for the period to the beginning work-in-progress and then subtracting the ending work-in-progress. Total manufacturing costs = Direct labour + Raw materials used + Factory supplies used + Other factory overheads + Indirect labour Total manufacturing costs = ₦50,000 + ₦18,000 + ₦7,000 + ₦19,000 + ₦4,000 = ₦98,000 Therefore, cost of goods manufactured = Beginning work-in-progress + Total manufacturing costs - Ending work-in-progress = ₦4,000 + ₦98,000 - ₦9,000 = ₦93,000 Hence, the cost of goods manufactured is ₦93,000.