Inventory balances for Rude,Inc.,in April are as follows: $$\begin{array} { l c c }
& \text { April } 1 & \text { April 30 } \
\text { Materials } &\$ 9,000 & \$7,000 \
\text { Work in process } & 16,000 & 12,400 \
\text { Finished goods } & 36,000 & 30,000
\end{array}$$ During April,purchases of direct materials were $18,000.Direct labour and factory overhead costs were $20,000 and $28,000,respectively.
What was the cost of goods manufactured in April?
A)$68,000
B)$71,600
C)$74,000
D)$77,600

Question

Inventory balances for Rude,Inc.,in April are as follows: $$\begin{array} { l c c } 
& \text { April } 1 & \text { April 30 } \
\text { Materials } &\$ 9,000 & \$7,000 \
\text { Work in process } & 16,000 & 12,400 \
\text { Finished goods } & 36,000 & 30,000
\end{array}$$ During April,purchases of direct materials were $18,000.Direct labour and factory overhead costs were $20,000 and $28,000,respectively.
What was the cost of goods manufactured in April?
A)$68,000
B)$71,600
C)$74,000
D)$77,600

Quizplus · Accepted Answer

The cost of goods manufactured can be calculated using the formula:

Cost of goods manufactured = Beginning inventory of WIP + Total manufacturing costs during the period - Ending inventory of WIP

Beginning inventory of WIP = $6,800
Total manufacturing costs during the period = Direct materials + Direct labor + Factory overhead
= $18,000 + $20,000 + $28,000
= $66,000
Ending inventory of WIP = $8,200

Cost of goods manufactured = $6,800 + $66,000 - $8,200 = $71,600

Therefore, the cost of goods manufactured in April was $71,600.

Inventory Balances for Rude,Inc During April,purchases of Direct Materials Were $18,000