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Problem 1.b.: Computation of Costs of Goods Manufactured (COGM).Akari Inc. provided the following information for its work-in-process inventory account at the end of the current month.Work-in-process Inventory (WIP)Accounts                     $               Accounts    $Beginning balance      $19,500    COGM      ?Direct materials (DM)  $76,200Direct labor (DL)          $120,000MOH allocated            $72,000Ending Balance          $24,300Required: Compute the Costs of Goods Manufactured (COGM) at the end of the current month.Solution: Formula:Beginning WIP+ TMC (total manufacturing costs) for the periodDM usedDL incurredMOH allocatedTMC in WIP- Ending WIP= COGM

Problem 1.b.: Computation of Costs of Goods Manufactured (COGM).Akari Inc. provided the following information for its work-in-process inventory account at the end of the current month.Work-in-process Inventory (WIP)Accounts                     $               Accounts    $Beginning balance      $19,500    COGM      ?Direct materials (DM)  $76,200Direct labor (DL)          $120,000MOH allocated            $72,000Ending Balance          $24,300Required: Compute the Costs of Goods Manufactured (COGM) at the end of the current month.Solution: Formula:Beginning WIP+ TMC (total manufacturing costs) for the periodDM usedDL incurredMOH allocatedTMC in WIP- Ending WIP= COGM

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 1.b.: Computation of Costs of Goods Manufactured (COGM).
Akari Inc. provided the following information for its work-in-process inventory account at the end of the current month.
Work-in-process Inventory (WIP)
Accounts                     $               Accounts    $
Beginning balance      $19,500    COGM      ?
Direct materials (DM)  $76,200
Direct labor (DL)          $120,000
MOH allocated            $72,000
Ending Balance          $24,300
Required: Compute the Costs of Goods Manufactured (COGM) at the end of the current month.
Solution: Formula:
Beginning WIP
+ TMC (total manufacturing costs) for the period
DM used
DL incurred
MOH allocated
TMC in WIP
- Ending WIP
= COGM

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