Direct Materials Used, Cost of Goods Manufactured In September, Lauren Ashley Company purchased materials costing $200,000 and incurred direct labor cost of $150,000. Overhead totaled $325,000 for the month. Information on inventories was as follows: September 1 September 30 Materials $100,000 $130,000 $100,000 $60,000 Work in process Finished goods $80,000 $75,000 Required: 1. What was the cost of direct materials used in September? 150,000 x 2. What was the total manufacturing cost in September? 625,000 x 3. What was the cost of goods manufactured for September? 665,000 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