Given the following data:?? $$\begin{array} { l r }
\text { Work in process, beginning } & \$ 14,000 \
\text { Work in process, ending } & 20,000 \
\text { Direct labor costs } & 4,000 \
\text { Cost of goods manufactured } & 8,000 \
\text { Factory overhead } & 8,000
\end{array}$$ Direct materials used is
A) $2,000
B) $4,000
C) $8,000
D) $14,000

Question

Given the following data:?? $$\begin{array} { l r } 
\text { Work in process, beginning } & \$ 14,000 \
\text { Work in process, ending } & 20,000 \
\text { Direct labor costs } & 4,000 \
\text { Cost of goods manufactured } & 8,000 \
\text { Factory overhead } & 8,000
\end{array}$$ Direct materials used is
A) $2,000
B) $4,000
C) $8,000
D) $14,000

Quizplus · Accepted Answer

To find the direct materials used, we start with the formula for the cost of goods manufactured (CGM): CGM = Beginning Work in Process + Total Manufacturing Costs - Ending Work in Process. Given that CGM is $8,000, Beginning Work in Process is $14,000, and Ending Work in Process is $20,000, we can solve for Total Manufacturing Costs. Total Manufacturing Costs include Direct Labor, Factory Overhead, and Direct Materials. We know Direct Labor is $4,000 and Factory Overhead is $8,000. Rearranging the formula and solving for Direct Materials gives us Direct Materials = CGM - Direct Labor - Factory Overhead + Ending Work in Process - Beginning Work in Process = $8,000 - $4,000 - $8,000 + $20,000 - $14,000 = $2,000.

Given the Following Data Direct Materials Used Is A) $2,000 B) $4,000 C) $8,000

Given the Following Data Direct Materials Used Is
A) $2,000
B) $4,000
C) $8,000