Justine's

Die-Cuts is preparing its cost of goods manufactured schedule at year-end.

Justine's

accounting records show the following: The raw materials inventory account had a beginning balance of

$20,000

and an ending balance of

$24,000.

During the year,

Justine

purchased

$68,000

of direct materials. Direct labour for the year totalled

$123,000,

while manufacturing overhead amounted to

$156,000.

The work in process inventory account had a beginning balance of

$28,000

and an ending balance of

$21,000.

Compute the cost of goods manufactured for the year.

(Hint:

The first step is to calculate the direct materials used during the year.)

Justine's Die Cuts
Cost of Goods Manufactured
Add:	Direct materials used
Direct materials used
Total manufacturing costs incurred during the period
Less:
Cost of goods manufactured