“Suppose a bakery reports this information: Beginning Raw Materials Inventory: $8,000Ending Raw Materials Inventory: $7,000Beginning Work-in-Process Inventory: $2,000Ending Work-in-Process Inventory: $1,000Beginning Finished Goods Inventory: $5,000Ending Finished Goods Inventory: $7,000Direct Labor: $30,000Purchases of Raw Materials: $96,000Manufacturing Overhead: $18,000What is the cost of goods manufactured?”,”(96,000+30,000+18,000) + 2,000 – 1,000=$146
000total manufacturing costs incurred from the year + beginning work in process inventory – ending work in process inventory(total manufacturing costs incurred from the year = direct materials + direct labor + total manufacturing overhead)(use chart on pg. 842)”