Selected information regarding a company's most recent quarter follows (all data in thousands). $$\begin{array} { | l | c c | }
\hline \text { Beginning work in process inventary } & \$ & 130 \
\hline \text { Cost of goods manufactured } & \$ & 320 \
\hline \text { Direct materials used } & \$ & 170 \
\hline \text { Direct labor } & \$ & 90 \
\hline \text { Ending work in process inventory } & \$ & 140 \
\hline
\end{array}$$ What was manufacturing overhead for the quarter?
A)$ 70
B)$260
C)$310
D)$ 60

Question

Selected information regarding a company's most recent quarter follows (all data in thousands). $$\begin{array} { | l | c c | } 
\hline \text { Beginning work in process inventary } & \$ & 130 \
\hline \text { Cost of goods manufactured } & \$ & 320 \
\hline \text { Direct materials used } & \$ & 170 \
\hline \text { Direct labor } & \$ & 90 \
\hline \text { Ending work in process inventory } & \$ & 140 \
\hline
\end{array}$$ What was manufacturing overhead for the quarter?
A)$ 70
B)$260
C)$310
D)$ 60

Quizplus · Accepted Answer

Manufacturing overhead can be calculated using the formula: Cost of Goods Manufactured = Direct Materials + Direct Labor + Manufacturing Overhead + Beginning WIP - Ending WIP. Plugging in the values: $320 = $170 + $90 + Manufacturing Overhead + $130 - $140. Solving for Manufacturing Overhead gives $70.

Selected Information Regarding a Company's Most Recent Quarter Follows (All