The records of the Williamson Company show the following information: $$\begin{array} { l r }
\text { Direct materials used } & \$ 90,000 \
\text { Direct labor } & 130,000 \
\text { Factory overhead } & 150,000 \
\text { Beginning work-in-process inventory } & 15,000 \
\text { Beginning finished goods inventory } & 20,000 \
\text { Ending work-in-process inventory } & 42,000 \
\text { Selling and administrative expenses } & 37,500
\end{array}$$
What was the cost of goods manufactured during the year?
A)$370,000
B)$365,000

Question

The records of the Williamson Company show the following information: $$\begin{array} { l r } 
\text { Direct materials used } & \$ 90,000 \
\text { Direct labor } & 130,000 \
\text { Factory overhead } & 150,000 \
\text { Beginning work-in-process inventory } & 15,000 \
\text { Beginning finished goods inventory } & 20,000 \
\text { Ending work-in-process inventory } & 42,000 \
\text { Selling and administrative expenses } & 37,500
\end{array}$$
What was the cost of goods manufactured during the year?
A)$370,000
B)$365,000

Quizplus · Accepted Answer

Cost of goods manufactured = Direct materials used + Direct labor + Factory overhead + Beginning work-in-process inventory - Ending work-in-process inventory= $90,000 + $130,000 + $150,000 + $15,000 - $42,000= $370,000

The Records of the Williamson Company Show the Following Information