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Question - Orange Electronics (OE) produced 30,000 widgets last month. OE started the month with $50,000 worth of inventory in their Finished Goods. The company incurred $70,000 of various utility and rent charges on their factory, paid $200,000 for raw materials to use in production, and paid employees $50,000 in wages.
During the month, inventory costing $300,000 was completed and transferred to the Finished Goods Inventory. At the end of the month, OE had $20,000 of Inventory in Finished Goods, $10,000 in Materials Inventory, and $15,000 still in Work in Process.
Required - What was OE's Cost of Goods Manufactured for the month?
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