The following data (in thousands of pounds) have been taken from the accounting records of Karmint Corporation for the just completed year:

-The cost of goods manufactured (finished) for the year (in thousands of pounds) was:

A)£480.
B)£490.
C)£440.
D)£510.

Question

The following data (in thousands of pounds) have been taken from the accounting records of Karmint Corporation for the just completed year:

-The cost of goods manufactured (finished) for the year (in thousands of pounds) was:

A)£480. 
B)£490. 
C)£440. 
D)£510.

Quizplus · Accepted Answer

The cost of goods manufactured is the total cost incurred during the production of finished goods. From the given data, the material consumed was 150, direct labor cost incurred was 90 and overhead cost incurred was 200. Thus, the total cost of goods manufactured would be 150+90+200=440 thousand pounds. Therefore, the best choice is C).

The Following Data (In Thousands of Pounds) Have Been Taken