Leslie Manufacturing reported the following:Revenue $450,000Beginning inventory of direct materials, January 1, 2015 20,000Purchases of direct materials 156,000Ending inventory of direct materials, December 31, 2015 18,000Direct manufacturing labor 21,000Indirect manufacturing costs 42,000Beginning inventory of finished goods, January 1, 2015 40,000Cost of goods manufactured 114,000Ending inventory of finished goods, December 31, 2015 45,000Operating costs 150,000How much of the above would be considered period costs for Leslie Manufacturing?

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Samawati Samawati · Answer 1 · 2020-02-12T15:23:28+01:00

Answer:

$109,000

Explanation:

The accounting equation for the cost of goods sold

COGS = opening finished good + purchases - Closing finished goods

In a manufacturing firm, purchases are also referred to as manufacturing costs.

For Leslie manufacturing:

beginning finished inventory =$40,000

costs of goods manufactured = $ 144,000

Ending finished inventory = $ 45,000

cost of manufacturing for the period:

=$40,000 +$114,000- $45,000

=$109,000