Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 14

Cost of goods manufactured and cost of goods sold The following table summarizes the beginning and ending inventories of Decatur Manufacturing, Inc., for the month of October:

Raw materials purchased during the month of October totaled $123,900. Direct labor costs incurred totaled $312,200 for the month. Actual and applied manufacturing overhead costs for October totaled $188,400 and $192,300, respectively. Over/underapplied overhead is written off to cost of goods sold at the end of the year in December.
Required:
a. Calculate the cost of goods manufactured for October.
b. Calculate the cost of goods sold for October.