Rediger Inc.,a manufacturing Corporation,has provided the following data for the month of June.The balance in the Work in Process inventory account was $22,000 at the beginning of the month and $17,000 at the end of the month.During the month,the Corporation incurred direct materials cost of $55,000 and direct labor cost of $28,000.The actual manufacturing overhead cost incurred was $53,000.The manufacturing overhead cost applied to Work in Process was $51,000.The cost of goods manufactured for June was:
A) $141,000
B) $139,000
C) $134,000
D) $136,000

Question

Quizplus · Accepted Answer

Cost of goods manufactured = Direct materials + Direct labor + Manufacturing overhead applied + Beginning work in process inventory - Ending work in process inventory
= $55,000 + $28,000 + $51,000 + $22,000 - $17,000
= $139,000