Direct Materials Used, Cost of Goods Manufactured In September, Lauren Ashley Company purchased materials costing $200,000 and incurred direct labor cost of $120,000. Overhead totaled $325,000 for the month. Information on inventories was as follows: September 30 September 1 Materials $120,000 $130,000 Work in process 80,000 90,000 Finished goods Required: 70,000 65,000 1. What was the cost of direct materials used in September? $ 320,000 X 2. What was the total manufacturing cost in September? 645,000 X 3. What was the cost of goods manufactured for September? 135,000 X Feedback Check My Work 1. Direct materials used = Beginning materials + Purchases - Ending materials. 2. Total manufacturing cost = Direct materials used + Direct labor + Overhead. 3. The cost of goods manufactured Beginning WIP + Total manufacturing cost - Ending WIP.