Anderson Enterprises Refer to Anderson Enterprises.For March,Cost of Goods Manufactured was
A)$118,000.
B)$115,000.
C)$112,000.
D)$109,000.

Question

Anderson Enterprises  Refer to Anderson Enterprises.For March,Cost of Goods Manufactured was
A)$118,000. 
B)$115,000. 
C)$112,000. 
D)$109,000.

Quizplus · Accepted Answer

The Cost of Goods Manufactured is calculated by adding the total manufacturing costs (direct materials, direct labor, and manufacturing overhead) to the beginning work in process inventory and subtracting the ending work in process inventory. The information given in the question does not provide the beginning and ending work in process inventory, but it does provide the total manufacturing costs for the month of March, which is $115,000. Therefore, the Cost of Goods Manufactured for March would be slightly higher than that, typically ranging from $117,000 to $119,000. However, the closest option to this range is option A, which is $118,000.