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Olivia’s Outdoor Essentials produces gear for climbing, hiking, and camping. Last month, Olivia reported the following:...

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Accounting

Olivia’s Outdoor Essentials produces gear for climbing, hiking,and camping. Last month, Olivia reported the following: BeginningWork in Process Inventory: $20,000 Ending Work in ProcessInventory: $25,000 Beginning Finished Goods Inventory: $15,000Ending Finished Goods Inventory: $13,000 Direct Labor: $60,000Beginning Raw Materials Inventory: $20,000 New Raw MaterialsPurchased: $48,000 Ending Raw Materials Inventory: $10,000 IndirectMaterials Used: $8,000 Indirect Labor: $10,000 Other AppliedManufacturing Overhead: $30,000

Required:

a. What was the Manufacturing Costs for the period?

b. What was the Cost of Goods Manufactured for the period?

c. What was the Cost of Goods Sold for the period?

Answer & Explanation Solved by verified expert
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Direct materials costs
-Beginning inventory $ 20,000
- Purchases of direct materials $ 48,000
-Cost of direct materials available for use $ 68,000
Ending inventory $-10,000
Material used $ 58,000
Less: Indirect Material used $ -8,000
Direct Material Used $ 50,000
Direct Labor $ 60,000
Manufacturing Overheads $ 48,000
Manufacturing costs incurred $158,000
Add beginning work-in-process inventory $ 20,000
a Total Manufacturing Cost $178,000
Less Ending WIP $ -25,000
b Cost of Goods Manufactured $153,000
Add: Beginning Finished Goods Inventory $ 15,000
Cost of Goods Available for Sale $168,000
Less: Ending Finished Goods Inventory $ -13,000
c Cost of Goods Sold $155,000

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