Figure 5-4.Hill Company uses job-order costing. At the end of the month, the following data was gathered:
Hill's selling price is cost plus 50% for each of its products.
-Refer to Figure 5-4. What is Cost of Goods Sold for the month?

Question

Figure 5-4.Hill Company uses job-order costing. At the end of the month, the following data was gathered:
  Hill's selling price is cost plus 50% for each of its products.
-Refer to Figure 5-4. What is Cost of Goods Sold for the month?

Quizplus · Accepted Answer

Cost of goods sold can be calculated as total cost of goods manufactured plus beginning work-in-process inventory minus ending work-in-process inventory. 
Total cost of goods manufactured = direct materials + direct labor + factory overhead = $990 + $580 + $620 = $2,190 
Beginning work-in-process inventory = $0 
Ending work-in-process inventory = ($80 + $30 + $70) = $180 
So, Cost of goods sold = $2,190 - $0 + $180 = $1,733. Therefore, the answer is C.