Cost of Materials Used $45,000 Direct Labor costs $48,000
Factory Overhead $39,000
Work in Process, beg. $28,000
Work in Process, end. $18,000
What is Cost of Goods Manufactured?
A) $178,000
B) $132,000
C) $122,000
D) $142,000

Question

Quizplus · Accepted Answer

Cost of Goods Manufactured is calculated as: Beginning Work in Process + Total Manufacturing Costs - Ending Work in Process. Total Manufacturing Costs include Direct Materials, Direct Labor, and Factory Overhead. Therefore, $28,000 + ($45,000 + $48,000 + $39,000) - $18,000 = $142,000.

Cost of Materials Used $45,000 Direct Labor Costs $48,000