COST OF DIRECT MATERIALS, COST OF GOODS MANUFACTURED, COST OF GOODS SOLD Bisby Company manufactures fishing rods. At the beginning of July, the following information was supplied by its accountant:

Raw materials inventory $40,000 Work-in-process inventory 21,000 Finished goods inventory 23,200 During July, the direct labor cost was $43,500, raw materials’ purchases were $64,000, and the total overhead cost was $108,750. The inventories at the end of July were:

Raw materials inventory $19,800 Work-in-process inventory 32,500 Finished goods inventory 22,100 Required:

. What is the cost of the direct materials used in production during July?

. What is the cost of goods manufactured for July?

. What is the cost of goods sold for July?

Problem