South State Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during 2012. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100; maintenance of $4,500; repairs of $1,800; depreciation of $7,900; and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance.
How much is the cost of goods manufactured?
A) $124,700
B) $130,200
C) $137,700
D) $132,200

Question

Quizplus · Accepted Answer

Calculations: $5,500 + $71,000 + $37,000 + $2,700 + $1,600 + $3,100 + $4,500 + $1,800 +$7,900 + $2,600 - $7,500 = $130,200

South State Company Used $71,000 of Direct Materials and Incurred