During the year,a manufacturing company had the following operating results: What is the cost of goods manufactured for the year?
A)$1,011,000
B)$1,134,000
C)$1,033,000
D)$1,112,000

Question

During the year,a manufacturing company had the following operating results:  What is the cost of goods manufactured for the year?
A)$1,011,000 
B)$1,134,000 
C)$1,033,000 
D)$1,112,000

Quizplus · Accepted Answer

The cost of goods manufactured is calculated by adding the beginning work in process inventory to the total manufacturing costs and then subtracting the ending work in process inventory. Using the information given, the calculation would be:

Beginning work in process inventory = $150,000
Direct materials used = $370,000
Direct labor = $220,000
Manufacturing overhead = $260,000
Total manufacturing costs = $850,000
Ending work in process inventory = $11,000

Cost of goods manufactured = $150,000 + $370,000 + $220,000 + $260,000 - $11,000 = $1,011,000.

Therefore, the correct answer is A).

During the Year,a Manufacturing Company Had the Following Operating Results