Laramie Technologies Has the Following Data:​​ Calculate the Cost of Goods Manufactured

question 21

Essay

Laramie Technologies has the following data:​​ $$\begin{array} { l r } \text { Work in process inventory, beginning } & \$ 45,000 \\\text { Work in process inventory, ending } & 32,000 \\\text { Direct labor costs } & 56,000 \\\text { Cost of materials used } & 50,000 \\\text { Factory overhead } & 28,000\end{array}$$ Calculate the cost of goods manufactured.

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Definitions:

Equivalent Units

Equivalent units are a concept in cost accounting used to compute the number of units that could have been completed given the amount of work done, taking partially completed units into account.

Transferred-In Costs

Costs associated with units of product moved from one production process to another in the manufacturing cycle.

Prior Processing Department

A section within a manufacturing facility where raw materials undergo initial stages of processing before moving to subsequent phases of production.

Conversion Costs

The total expenses of manufacturing overhead and direct labor required to transform raw materials into completed products.