Frank Inc's data from the year just ended (below), compute cost of goods soid: Purchases of raw material, $26,000 Indirect materials transferred to manu. overhead $6,000 Direct labor, $58,000 Applied manu. overhead $97,000 raw materials beginning ending $23,000 $17,000 work in process inventory $32,000 $66,000 finished goods $30,000 $23,000
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To calculate the cost of raw materials used in production, we need to subtract the ending raw materials inventory from the beginning raw materials inventory and add the purchases of raw materials. Beginning raw materials inventory = $23,000 Ending raw materials Show more…
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