apter 18 Introduction to Managerial Accounting 903 Obj.4 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 35,000 Factory overhead 20,000 Work in process inventory, January 1 Work in process inventory, January 31 30,000 25,000 Finished goods inventory, January 1 Finished goods inventory, January 31 15,000 12,000 For January, determine (a) the cost of goods manufactured and (b) the cost of goods sold. Follow My Example 18-5 a. 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.. $ 30,000 $ 25,000 35,000 20,000 $ 15,000 85,000 $100,000 12,000 $ 88,000 80,000 $110,000 25,000 $ 85,000 Practice Exercises: PE 18-5A, PE 18-58 b.