Question 4 question tco 2 during the month of april

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Question 4. Question : (TCO 2) During the month of April, Stevens Company incurred costs of $70,000 for direct materials (raw) purchased, direct labor costs were $25,000 and factory overhead totaled $15,000. Also for the month of April, inventory balances were as follows : Raw materials beginning $4,000; raw materials ending $12,000
Work-in-process beginning $39,000; work-in-process ending $56,000 Finished goods beginning $20,000; finished goods ending $10,500 Required for this problem : Calculate the Cost of Goods Manufactured for April for Stevens Company (please show all of your calculation work for full credit).
Total manufacturing costs 102,000 Add beginning work-in-process inventory 39,000 141,000 Deduct ending work-in-process inventory 56,000 Cost of goods manufactured $85,000 (See Chapter 2) Points Received: 25 of 30 Comments: Math incorrect in first step...please see below: For the month of April use the following three formulas, in sequence (the values shown are all in $): Direct (Raw) Materials used = Begin RM + Amount Purchased - Ending RM = 4,000 + 70,000 - 12,000 = 62,000 Total Mfg Cost = DM + DL + Mfg OH = 62,000 + 25,000 + 15,000 = 102,000 COGM = Begin WIP + Total Mfg Costs - Ending WIP = 39,000 + 102,000 - 56,000 = 85,000

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