Assume the following information: $\begin{array}{lr}
\text { Direct materials used } & \$ 90,000 \
\text { Direct labour } & 130,000 \
\text { Factory overhead } & 150,000 \
\text { Beginning work-in-process inventory } & 15,000 \
\text { Beginning finished goods inventory } & 20,000 \
\text { Ending work-in-process inventory } & 42,000 \
\text { Selling and administrative expenses } & 37,500
\end{array}$
What was the cost of goods manufactured during the year?
A)$333,000
B)$343,000
C)$365,000
D)$370,000

Question

Assume the following information: $\begin{array}{lr}
\text { Direct materials used } & \$ 90,000 \
\text { Direct labour } & 130,000 \
\text { Factory overhead } & 150,000 \
\text { Beginning work-in-process inventory } & 15,000 \
\text { Beginning finished goods inventory } & 20,000 \
\text { Ending work-in-process inventory } & 42,000 \
\text { Selling and administrative expenses } & 37,500
\end{array}$ 
What was the cost of goods manufactured during the year?
A)$333,000
B)$343,000
C)$365,000
D)$370,000

Quizplus · Accepted Answer

The cost of goods manufactured is calculated as the total manufacturing costs plus the beginning work-in-process inventory, minus the ending work-in-process inventory. Total manufacturing costs include direct materials, direct labor, and factory overhead, which sum to $370,000 ($90,000 + $130,000 + $150,000). Adding the beginning work-in-process inventory ($15,000) and subtracting the ending work-in-process inventory ($42,000) gives $343,000 ($370,000 + $15,000 - $42,000).

Assume the Following Information What Was the Cost of Goods Manufactured During the Year