Consider the following:
Work-in-process inventory, beginning
Manufacturing overhead, actual
Raw material used
Work-in-process inventory, ending
What is the cost of goods manufactured that would be reported in a schedule of
cost of goods manufactured?
The overhead applied to work in process was $398,000 (= $400,000 -
$2,000). The cost of goods manufactured is equal to the raw material used,
plus direct labor, plus applied overhead, plus beginning work in process,
and less ending work in process. The cost of goods manufactured is
$1,136,000 (= $230,000 + $524,000 + $398,000 + $12,000 - $28,000).
Consider the following schedule for allocating rent expense on the basis
of square footage: