Reference no: EM132536587

Question 1: Explain the difference between Cost of manufactured goods and Cost of goods sold. And what is their position when calculating costs

Case

Choconut Company is currently calculating costs in one month. Direct labor is $ 220,000, manufacturing overhead is $ 200,000, and direct material is purchased for $ 300,000. Inventory calculated as below:

                                Beginning                   Ending

Finished goods             $ 60,000                   $ 40,000

Work in Process           $ 120,000                 $ 100,000

Direct Materials                $ 40,000              $ 20,000

Questions:

1. Cost of Goods Manufactured (COGM)?

2. Cost of Goods Sold (COGS)?