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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).

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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).

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1 - The equation for COGM is

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

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

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