The following costs are attributed to the Quilt Company:

Purchase of raw materials (all direct)

$297,000

Direct labour cost

$141,600

Manufacturing overhead costs

$166,260

Inventories:

Beginning raw materials

$10,000

Ending raw materials

$8,000

Beginning work in process

$20,000

Ending work in process

$15,600

Beginning finished goods

$20,000

Ending finished goods

$5,600

Quilt Company used a 120% predetermined overhead rate based on direct labour cost.

Required:

a- Calculate the cost of goods manufactured. (7 marks)

b- What was the cost of goods sold before adjusting for any under or over applied overhead? (3 marks)