Inventory balances for Spiritlight Ventures for November 2018 are as follows: $$\begin{array}{l}\begin{array} { l l l }
&\text { November } 1,2018& \text { November } 30,2018\

\text { Materials } & \$ 9,000 & \$ 7,000 \
\text { Work in process } & 16,000 & 12,400 \
\text { Finished goods } & 36,000 & 30,000
\end{array}
\end{array}$$
During November, purchases of direct materials were $18,000. Direct labor and factory overhead costs were $20,000 and $28,000, respectively.
The cost of goods manufactured in November was
A)$68,000.
B)$77,600.
C)$74,000.
D)$71,600.

Question

Inventory balances for Spiritlight Ventures for November 2018 are as follows: $$\begin{array}{l}\begin{array} { l l l } 
&\text { November } 1,2018& \text { November } 30,2018\

\text { Materials } & \$ 9,000 & \$ 7,000 \
\text { Work in process } & 16,000 & 12,400 \
\text { Finished goods } & 36,000 & 30,000
\end{array}
\end{array}$$
During November, purchases of direct materials were $18,000. Direct labor and factory overhead costs were $20,000 and $28,000, respectively.
The cost of goods manufactured in November was
A)$68,000.
B)$77,600.
C)$74,000.
D)$71,600.

Quizplus · Accepted Answer

The cost of goods manufactured is calculated as: Beginning WIP ($16,000) + Direct Materials Used ($9,000 + $18,000 - $7,000) + Direct Labor ($20,000) + Factory Overhead ($28,000) - Ending WIP ($12,400) = $71,600.

Inventory Balances for Spiritlight Ventures for November 2018 Are as Follows