Ebony Company has the following information for July: Cost of direct materials used in production $67,200

Ebony Company has the following information for July:

Cost of direct materials used in production $67,200
Direct labor88,000
Factory overhead44,800
Work in process inventory, July 1 32,800
Work in process inventory, July 31 29,600
Finished goods inventory, July 1 37,600
Finished goods inventory, July 31 27,200

For July, determine (a) the cost of goods manufactured and (b) the cost of goods sold.

Answer:

a. Work in process inventory, July 1………………………………… $  32,800 
Cost of direct materials used in production………………………   $67,200 
Direct labor………………………………………………………………  88,000 
Factory overhead………………………………………………………     44,800 
Total manufacturing costs incurred during July…………………   200,000 
Total manufacturing costs………………………………………… $232,800 
Less work in process inventory, July 31……………………………     29,600 
Cost of goods manufactured…………………………………………  $203,200 
b. Finished goods inventory, July 1………………………………… $  37,600 
Cost of goods manufactured…………………………………………    203,200 
Cost of finished goods available for sale………………………… $240,800 
Less finished goods inventory, July 31……………………………     27,200 
Cost of goods sold……………………………………………………  $213,600