The following data pertains to Lam Co.'s manufacturing operations:
Additional information for the month of April:
Overhead is applied at $10 per direct labor hour.
For the month of April,cost of goods manufactured was:
A)$118,000.
B)$115,000.
C)$112,000.
D)$109,000. $118,000 = $9,000 + ($42,000 + $18,000 - $15,000)+ $30,000 + $40,000 - $6,000 Overhead incurred = overhead applied = ($30,000/$7.50)x $10 = $40,000

Question

The following data pertains to Lam Co.'s manufacturing operations: 
Additional information for the month of April: 
Overhead is applied at $10 per direct labor hour.
For the month of April,cost of goods manufactured was:
A)$118,000. 
B)$115,000. 
C)$112,000. 
D)$109,000. $118,000 = $9,000 + ($42,000 + $18,000 - $15,000)+ $30,000 + $40,000 - $6,000 Overhead incurred = overhead applied = ($30,000/$7.50)x $10 = $40,000

Quizplus · Accepted Answer

Using the given formula for cost of goods manufactured and the additional information provided, we can calculate the answer as follows:

Direct materials used = $42,000
Direct labor = $18,000
Factory overhead incurred (applied) = $40,000
Total manufacturing costs = $100,000
Work-in-progress inventory beginning = $9,000
Work-in-progress inventory ending = $6,000
Therefore,
Cost of goods manufactured = $9,000 + ($42,000 + $18,000 - $15,000)+ $40,000 - $6,000
= $118,000

Hence, the correct answer is A.

The Following Data Pertains to Lam Co