A company used $34,000 of direct materials,incurred $73,000 in direct labour cost and $114,000 in manufacturing overhead costs during the period. If beginning and ending work in process inventories were $27,000 and $21,500 respectively,what is the cost of goods manufactured?
A) $215,500
B) $221,000
C) $226,500
D) $248,000

Question

Quizplus · Accepted Answer

Cost of goods manufactured can be calculated as follows:

Direct Materials Used = $34,000
Direct Labour Cost = $73,000
Manufacturing Overhead Cost = $114,000
Total Manufacturing Cost = $34,000 + $73,000 + $114,000 = $221,000
Add: Beginning Work in Process Inventory = $27,000
Less: Ending Work in Process Inventory = $21,500
Cost of Goods Manufactured = $221,000 + $27,000 - $21,500 = $226,500

Therefore, the correct choice is C.

A Company Used $34,000 of Direct Materials,incurred $73,000 in Direct