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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 October 2, 2020, 4:01 am 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

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