Formulas to remember

Question 1

Calculate Raw Materials Used

Answer 1

Raw Materials Used = Beginning balance + Purchases - Ending balance

Question 2

Calculate the Total Manufacturing Costs added to Work in Process Inventory:

Answer 2

Total Manufacturing Costs = Direct Materials Used (from Raw Materials) + Direct Labor + Manufacturing Overhead

Question 3

Calculate the Cost of Goods Manufactured

Answer 3

Cost of Goods Manufactured = Beginning Work in Process balance + Total Manufacturing Costs added - Ending Work in Process balance

Question 4

Calculate the Cost of Goods Sold

Answer 4

Cost of Goods Sold = Beginning Finished Goods balance + Cost of Goods Manufactured - Ending Finished Goods balance