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Santa Cruz, Inc: Total Manufacturing Costs and Cost of Goods

Given the following information:

The following information comes from the accounting records for Santa Cruz, Inc., for March:

Direct material inventory, March 1 $ 18,900
Direct material inventory, March 31 15,000
Work-in-process inventory, March 1 8,200
Work-in-process inventory, March 31 6,200
Finished goods inventory, March 1 54,400
Finished goods inventory, March 31 72,600
Direct materials purchased during March 83,100
Direct labor costs, March 60,300
Manufacturing overhead, March 79,000

Compute Total manufacturing costs for the month of March.
Compute Cost of goods manufactured for the month of March
Compute Cost of goods sold for the month of March

Solution Preview

See tutorial attached in Excel for coaching and computations.

Compute Total manufacturing costs for the month of March. = $226,300

Compute Cost of goods manufactured for the month of March = $235,100

Compute Cost of goods sold for the ...

Solution Summary

Your tutorial shows you the "model" for the flow of costs among materials, work in process and finished goods. Next, the tutorial populates the model with the amounts given highlighting in yellow the missing amounts. Finally, the tutorial shows you in Excel (click in cells to see formula computation) how to solve the missing pieces in sequence to get the needed amounts. This is now a template for other similar problems. The tutorial uses "beginning, plus and minus monthly activity to get ending" rather that a debit/credit T account presentation. However, this fits nicely with a T account textbook by using debits as positive amounts and credits as negative amounts.

$2.19