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# Sears Co: Cost of Goods Sold

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The following table summarizes the beginning and ending inventories of Sears Co. For the month of October:
Sept. 30 Oct. 31
Raw Materials \$ 29, 700 \$31,000
Work-in-process 65,800 61,000
Finished process 52,700 46,200

Raw materials purchased during the month of October totaled \$112,300. Direct labor costs incurred totaled \$234,800 for the month. Actual and applied manufacturing overhead costs for October totaled \$145,100 and \$149,400, respectively.

1) Calculate the cost of goods manufactured for October.
2) Calculate the cost of goods sold for October (ignore under/overapplied overhead).

© BrainMass Inc. brainmass.com September 22, 2018, 4:39 pm ad1c9bdddf - https://brainmass.com/business/cogs/sears-cost-goods-sold-518939

#### Solution Preview

1 - The equation for COGM is

Beg RM inventory + purchases - ending RM inventory + DL + MOH + BWIP - EWIP

29700 + 112300 - 31000 + 234800 + 149400 ...

#### Solution Summary

This solution calculates the cost of goods manufactured and the cost of goods sold for October (two separate equations, all details and calculations are provided).

\$2.19