Cost of Goods Manufacrured/Sold

Question 1

Traditional Costing step 1

Calculated Predetermined OH Rate

Answer 1

Estimated Total OH Costs/Estimated Cost Drivers (Direct labor $, Direct Labor Hours, Manufacturing Overhead)

Question 2

Traditional Costing Step 2

Applied Overhead

Answer 2

Calculated OH Rate X Actual Cost Driver

Question 3

Direct Materials Used (if not given)

Answer 3

Beginning Raw Materials
\+ Purchases (include freight inn & scrap)
= Materials Available
- Ending Raw Materials
=Direct Materials Used

Question 4

Cost of Goods Manufactured

Answer 4

Beginning Work in Process
Add: Direct Materials USED
         Direct Labor
         Manufacturing OH Applied
             Total manufacturing costs incurred
=Total manufacturing costs available
- Ending Work in Process
= Cost of Goods Manufactured

Question 5

Cost of Goods Sold

Answer 5

Beginning Inventory
\+ Cost of Goods Manufactured
= Goods available for sale
- ending finished goods inventory
= COGS

Question 6

Product Costs

Answer 6

DM + DL + OH Applied