The following information is for X Company for 2009:
Direct materials purchased $ 36,484
Direct materials used 34,013
Direct labor 14,439
Overhead 25,464
Work in Process, January 1, 2009 4,118
Finished Goods, January 1, 2009 2,326
Work in Process, December 31, 2009 2,980
Finished goods, December 31 2009 6,434
What was Cost of Goods Sold in 2009?
32376?
wow i wasnt even born.
To find the Cost of Goods Sold (COGS) for a company, you need to calculate the total cost of the goods that were sold during a specific period.
COGS can be calculated using the following formula:
COGS = Opening Finished Goods Inventory + Cost of Goods Manufactured - Closing Finished Goods Inventory
Let's calculate the COGS using the given information:
1. Opening Finished Goods Inventory: This refers to the value of finished goods at the beginning of the year. In this case, it is given as 2,326.
2. Cost of Goods Manufactured: This includes the direct materials used, direct labor, and overhead costs. To find it, you need to sum up these three values:
Cost of Goods Manufactured = Direct materials used + Direct labor + Overhead
Cost of Goods Manufactured = 34,013 + 14,439 + 25,464
3. Closing Finished Goods Inventory: This refers to the value of finished goods at the end of the year. In this case, it is given as 6,434.
Now, let's calculate the COGS:
COGS = Opening Finished Goods Inventory + Cost of Goods Manufactured - Closing Finished Goods Inventory
COGS = 2,326 + (34,013 + 14,439 + 25,464) - 6,434
COGS = 2,326 + 73,916 - 6,434
COGS = 2,842 + 73,916
COGS = 76,758
Therefore, the Cost of Goods Sold (COGS) for X Company in 2009 is $76,758.