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The following information is available for the manufacturing operations of Argon Ltd. for the month of January:
Direct materials purchased $40,000
Direct labour cost $20,000
Direct labour hours 1,000
Factory overhead rate per direct labour hour $12
Opening inventory January 1
Direct materials $25,000
WIP $15,000
Finished goods $45,000
Ending inventory January 31
Direct materials $20,000
WIP $10,000
Finished goods $40,000
Problem a) What is the Cost Of Goods Manufactured?
Problem b) What is the Cost Of Goods Sold?
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