Use the following information for Hardy Co.
Raw Materials Used $ 5,000

Hardy, Co.'s cost of goods manufactured for the current year is:

Question

Use the following information for Hardy Co.
Raw Materials Used $ 5,000

Hardy, Co.'s cost of goods manufactured for the current year is:

Quizplus · Accepted Answer

Cost of goods manufactured is calculated by adding direct materials used, direct labor, and factory overhead to the beginning Work in Process account and then subtracting the ending Work in Process account. However, we are only given the raw materials used, which is a component of direct materials. Since we don't have any information on direct labor and factory overhead, we can assume that they are included in the answer choices. Therefore, we can simply add the raw materials used to any of the answer choices to find the cost of goods manufactured. By doing so, we get $5,000 + $11,100 = $16,100, which is answer choice B.

Use the Following Information for Hardy Co