Rediger Incorporated a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $22,000 at the beginning of the month and $17,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $55,000 and direct labor cost of $28,000. The actual manufacturing overhead cost incurred was $53,000. The manufacturing overhead cost applied to Work in Process was $51,000. The cost of goods manufactured for June was:
A) $141,000.
B) $139,000.
C) $134,000.
D) $136,000.

Question

Quizplus · Accepted Answer

The cost of goods manufactured is calculated as the sum of the beginning work in process inventory, direct materials cost, direct labor cost, and applied manufacturing overhead, minus the ending work in process inventory. So, it's $22,000 (beginning WIP) + $55,000 (direct materials) + $28,000 (direct labor) + $51,000 (applied overhead) - $17,000 (ending WIP) = $139,000.

Rediger Incorporated a Manufacturing Corporation, Has Provided the Following Data