903 Obj. 4 Chapter 18 Introduction to Managerial Accounting Example Exercise 18-5 Cost of Goods Sold, Cost of Goods Manufactured Gauntlet Company has the following information for January: Cost of direct materials used in production $25,000 Direct labor Factory overhead 20,000 Work in process inventory, January 1 Work in process inventory, January 31 25,000 Finished goods inventory, January 1 15,000 Finished goods inventory, January 31 12,000 For January, determine (a) the cost of goods manufactured and (b) the cost of goods sold. 35,000 30,000 Follow My Example 18-5 a. $ 30,000 $ 25,000 35,000 20,000 Work in process inventory, January 1. Cost of direct materials used. Direct labor.. Factory overhead Total manufacturing costs incurred during January. Total manufacturing costs ..... Less work in process inventory, January 31. Cost of goods manufactured. Finished goods inventory, January 1 Cost of goods manufactured. Cost of finished goods available for sale. Less finished goods inventory, January 31. Cost of goods sold. 80,000 $110,000 25,000 $ 85,000 b. $ 15,000 85,000 $100,000 12,000 $ 88,000 Practice Exercises: PE 18-5A, PE 18-5B 3-5 p. 903 PE 18-5B Cost of goods sold, cost of goods manufactured Glenville Company has the following information for April: OBJ. 4 Cost of direct materials used in production Direct labor Factory overhead Work in process inventory, April 1 Work in process inventory, April 30 Finished goods inventory, April 1 Finished goods inventory, April 30 $280,000 324,000 188,900 72,300 76,800 39,600 41,200 For April, determine (a) the cost of goods manufactured and (b) the cost of goods sold