Assume the following data for Gross, Inc., for February: $\begin{array}{lr}
\text { Beginning finished goods inventory } & £ 60,000 \
\text { Beginning work-in-prgress inventory } & 40,000 \
\text { Ending work-in-progress inventory } & 80,000 \
\text { Ending finished goods inventory } & 50,000 \
\text { Actual factory overhead costs } & 200,000 \
\text { Direct materials used } & 160,000 \
\text { Direct labour } & 100,000
\end{array}$ What is the cost of goods manufactured for February?
A)£470,000
B)£420,000
C)£460,000
D)£430,000

Question

Quizplus · Accepted Answer

The cost of goods manufactured is calculated by adding the total manufacturing costs to the beginning work-in-progress inventory and then subtracting the ending work-in-progress inventory. Total manufacturing costs include direct materials, direct labor, and factory overhead costs. Thus, the calculation is: $£160,000 (direct materials) + £100,000 (direct labor) + £200,000 (factory overhead) + £40,000 (beginning work-in-progress) - £80,000 (ending work-in-progress) = £420,000.$

Assume the Following Data for Gross, Inc What Is the Cost of Goods Manufactured for February? A)£470,000

Assume the Following Data for Gross, Inc What Is the Cost of Goods Manufactured for February?
A)£470,000