Assume that cost of goods sold for Boardman Company for January was $140,000.What was the cost of goods manufactured for the month?

Question

Quizplus · Accepted Answer

The cost of goods manufactured includes the cost of raw materials, direct labor, and manufacturing overhead for a particular period. This figure is calculated by adding the beginning inventory of work in process to the total manufacturing costs and then deducting the ending inventory of work in process. Since the cost of goods sold for Boardman Company for January was $140,000, the cost of goods manufactured for the month must have been higher. Option D is the only answer choice that is higher than $140,000.

Assume That Cost of Goods Sold for Boardman Company for January