Direct materials inventory, may 1 $ 18,000 direct materials inventory, may 31 15,300 work-in-process inventory, may 1 9,300 work-in-process inventory, may 31 5,600 finished goods inventory, may 1 54,200 finished goods inventory, may 31 73,000 direct materials purchased during may 84,800 direct labor costs, may 59,100 manufacturing overhead, may 80,800 required:
a. compute the total prime costs for the month of may.
b. compute the total conversion costs for the month of may.
c. compute the total manufacturing costs for the month of may.
d. compute the cost of goods manufactured for the month of may.
e. compute the cost of goods sold for the month of may.

Instructions are listed below

Explanation:

Giving the following information:

Direct materials inventory, May 1= $ 18,000

Direct materials inventory, May 31= 15,300

Work-in-process inventory, May 1= 9,300

Work-in-process inventory, May 31= 5,600

Finished goods inventory, May 1= 54,200

Finished goods inventory, May 31= 73,000

Direct materials purchased during May= 84,800

Direct labor costs, May= 59,100

Manufacturing overhead, May= 80,800

First, we need to calculate the direct materials used in production:

Direct materials used= beginning inventory + purchase - ending inventory= 18000 + 84800 - 15300= $87500

A) prime costs= direct materials + direct labor= 87500 + 59100= $146,600

B) Conversion costs= direct labor + manufacturing overhead= 59100 + 80800= $139,900

C) Total manufacturing costs= direct material + direct labor + manufacturing overhead= 87500 + 59100 + 80800= $227,400

D) Cost of goods manufactured= Beginning work in process + total manufacturing costs - ending work in process inventory= 9300 + 227400 - 5600= $231,100

E) Cost of goods sold= beginning finished goods inventory + Cost of goods manufactured - ending finished goods inventory

COCGS= 54200 + 231100 - 73000= $212,300