Ralph's Cafe Company has the following information for June. Cost of materials placed in production - $45,000 Direct labor - 20,000 Factory overhead - 14,000 Work in process inventory, June 1 - 2,900 Work in process inventory, June 30 - 3,500 What is the costs of goods manufactured?

cost of goods manufactured= $78,400

Explanation:

Giving the following information:

Cost of materials placed in production - $45,000

Direct labor - 20,000

Factory overhead - 14,000

Work in process inventory, June 1 - 2,900

Work in process inventory, June 30 - 3,500

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 2,900 + 45,000 + 20,000 + 14,000 - 3,500

cost of goods manufactured= $78,400

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