The Cake Factory has the following information for the month March. Determine the cost of goods manufactured.

Cost of materials placed in production	$69,000
Direct labor	25,000
Factory overhead	34,000
Work in process, March 1	17,000
Work in process, March 31	18,500
Finished goods inventory, March 1	21,000
Finished goods inventory, March 31	23,000

1. The cost of goods manufactured is:

2. The cost of goods sold is:

3. The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department had 8,000 liters in beginning work in process inventory (60% complete). During the period 70,000 liters were completed. The ending work in process was 3,000 liters (60% completed). What are the total equivalent units for direct materials under the FIFO method if materials were added at the beginning of the process?

ANSWER:

	Whole Units		Equivalent Units
Inventory in process, beginning of period
Started and completed during the period
Transferred out of Bottling (completed)
Inventory in process, end of period
Total units to be assigned costs

4. The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department had 8,000 liters in beginning work in process inventory (60% complete). During the period 70,000 liters were completed. The ending work in process was 3,000 liters (60% completed). What are the total equivalent units for direct materials under the FIFO method if materials were added throughout the process?

ANSWER:

	Whole Units		Equivalent Units
Inventory in process, beginning of period
Started and completed during the period
Transferred out of Bottling (completed)
Inventory in process, end of period
Total units to be assigned costs