Bisby Company manufactures fishing rods. At the beginning of July, the following informationwas supplied by its accountant:Raw materials inventory $40,000Work-in-process inventory 21,000Finished goods inventory 23,200During July, the direct labor cost was $43,500, raw materials purchases were $64,000, and thetotal overhead cost was $108,750. The inventories at the end of July were:Raw materials inventory $19,800Work-in-process inventory 32,500Finished goods inventory 22,100Required:1. What is the cost of the direct materials used in production during July?2. What is the cost of goods manufactured for July?3. What is the cost of goods sold for July?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Bisby Company manufactures fishing rods. At the beginning of July, the following information
was supplied by its accountant:
Raw materials inventory $40,000
Work-in-process inventory 21,000
Finished goods inventory 23,200
During July, the direct labor cost was $43,500, raw materials purchases were $64,000, and the
total overhead cost was $108,750. The inventories at the end of July were:
Raw materials inventory $19,800
Work-in-process inventory 32,500
Finished goods inventory 22,100
Required:
1. What is the cost of the direct materials used in production during July?
2. What is the cost of goods manufactured for July?
3. What is the cost of goods sold for July?

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