The Following Are Beginning and Ending Inventories of ABC Company

question 61

Essay

The following are beginning and ending inventories of ABC Company for the month of May:
$$\begin{array} { l r r } & \text { April 30 } & \text { May 31 } \\\text { Raw materials } & \$ 50,300 & \$ 41,400 \\\text { Work-in-process } & 106,900 & 97,200 \\\text { Finished goods } & 70,800 & 62,800\end{array}$$
Raw materials purchased during the month of May totaled $185,900.Direct labor costs incurred totaled $468,300 for the month.Actual and applied manufacturing overhead costs for May totaled $282,600 and $288,400, respectively.Over/underapplied overhead is written off to cost of goods sold at the end of the year in December.
(a)Calculate the cost of goods manufactured for May.
(b)Calculate the cost of goods sold for May.

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Definitions:

Mail Order

A retailing strategy where products are sold directly to consumers through catalogs or online platforms, without a physical storefront.

Single-Zone Pricing

A pricing strategy where a company charges the same price for a product or service across all geographic locations, ignoring transportation costs.

Freight-Absorption Pricing

Freight-Absorption Pricing is a strategy where a seller absorbs all or part of the freight charges to attract customers from distant locations.

Buyers

Individuals or entities that purchase goods or services for personal use, for resale, or for use in manufacturing or provision of services.