Walker Company reported the following year-end information: $\begin{array}{lr}
\text { Beginning work in process inventory } & \$ 46,000 \
\text { Beginning raw materials inventory } & 24,000 \
\text { Ending work in process inventory } & 50,000 \
\text { Ending raw materials inventory } & 20,000\
\text { Raw materials purchased } & 830,000 \
\text { Direct labor } & 440,000 \
\text { Manufacturing overhead } & 100,000
\end{array}$ How much is Walker's cost of goods manufactured for the year?

Question

Quizplus · Accepted Answer

To calculate the cost of goods manufactured, we first determine the total manufacturing costs, which include direct materials used, direct labor, and manufacturing overhead. Direct materials used is calculated as beginning raw materials inventory plus raw materials purchased minus ending raw materials inventory: $24,000 + $830,000 - $20,000 = $834,000. Adding direct labor ($440,000) and manufacturing overhead ($100,000) gives total manufacturing costs of $1,374,000. Then, we adjust for the change in work in process inventory: beginning work in process ($46,000) minus ending work in process ($50,000) results in a decrease of $4,000, which when subtracted from the total manufacturing costs, gives the cost of goods manufactured as $1,370,000.

Walker Company Reported the Following Year-End Information How Much Is Walker's Cost of Goods Manufactured for the work