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Calculation of Cost of Goods sold in Perpetual Inventory System.
The following information has been taken from the perpetual inventory system of Select Mfg. Co. for the month ended August 31:
Purchases of direct materials
$50,000
Direct materials used
40,000
Direct labor costs assigned to production
15,000
Manufacturing overhead costs incurred (and applied)
25,000
Balances in inventory
Aug 31
Aug 1
Materials
$ ?
$15,000
Work-in-Progress
55,000
37,000
Finished Goods
50,000
33,000
a. What is the cost of finished goods manufactured in August? b. What is the cost of goods sold manufactured in August?
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