Serene Comfort manufactures two types of mattresses, M1 & M2. The company provides you with the following data for the most recent year:

You also learn that Serene budgeted to spend (and also actually spent) $125,000 on manufacturing over-head during the year. Serene allocates overhead to products using labor cost as the allocation basis.
Required:
a. What is the cost of goods sold for M1?
b. What is the cost of materials purchased for M2?

Transcribed Image Text:

MI M2 Beginning balance in raw materials inventory Beginning balance in work in process Beginning balance in finished goods Purchases of materials Payments for direct labor Ending balance in raw materials inventory Ending balance in work in process Ending balance in finished goods Cost of goods sold $30,000 $45,000 15,00050,000 45,000 80,000 70,000 150,000 100,000 20,000 30,000 25,000 25,000 50,000 90,000 ?250,000