Boitumelo owns a manufacturing business. The following information is available for the year ended 31 December 2017.

Here are the calculations for the Cost of Goods Manufactured and Cost of Goods Sold based on the provided information. Assumptions: Rent and insurance (M 14 550) is considered entirely a factory overhead cost. No depreciation expense for factory machinery for the year is provided, so it is not included in manufacturing overhead. Step 1: Calculate Direct Materials Used. Beginning Raw Materials Inventory &= M 8\,080 \\ Add: Purchases of Raw Materials &= M 48\,730 \\ Less: Ending Raw Materials Inventory &= M 6\,590 \\ Direct Materials Used &= M 8\,080 + M 48\,730 - M 6\,590 \\ &= M 50\,220 Step 2: Calculate Total Manufacturing Overhead. Direct factory expenses &= M 1\,160 \\ Factory power &= M 5\,320 \\ Indirect factory wages and salaries &= M 18\,430 \\ Maintenance and storage costs &= M 2\,760 \\ Rent and insurance &= M 14\,550 \\ Total Manufacturing Overhead &= M 1\,160 + M 5\,320 + M 18\,430 + M 2\,760 + M 14\,550 \\ &= M 42\,220 Step 3: Calculate Total Manufacturing Costs. Direct Materials Used &= M 50\,220 \\ Direct Labour &= M 37\,290 \\ Total Manufacturing Overhead &= M 42\,220 \\ Total Manufacturing Costs &= M 50\,220 + M 37\,290 + M 42\,220 \\ &= M 129\,730 Step 4: Calculate Cost of Goods Manufactured (COGM). Beginning Work in Progress Inventory &= M 3\,310 \\ Add: Total Manufacturing Costs &= M 129\,730 \\ Less: Ending Work in Progress Inventory &= M 4\,180 \\ Cost of Goods Manufactured &= M 3\,310 + M 129\,730 - M 4\,180 \\ &= M 128\,860 Step 5: Calculate Cost of Goods Sold (COGS). Beginning Finished Goods Inventory &= M 12\,400 \\ Add: Cost of Goods Manufactured &= M 128\,860 \\ Less: Ending Finished Goods Inventory &= M 10\,880 \\ Cost of Goods Sold &= M 12\,400 + M 128\,860 - M 10\,880 \\ &= M 130\,380 Send me the next one 📸