Consider the following budget information: materials to be used totals $64,750; direct labor totals $198,400; factory overhead totals $394,800; work in process inventory January 1, 2012, was expected to be $189,100; and work in progress inventory on December 31, 2012, is expected to be $197,600. What is the budgeted cost of goods manufactured?
A) $649,450
B) $657,950
C) $197,600
D) $1,044,650

Question

Quizplus · Accepted Answer

The budgeted cost of goods manufactured is the sum of the direct materials, direct labor, and factory overhead costs incurred during the period, plus the change in work in process inventory. In this case, the budgeted cost of goods manufactured is $64,750 + $198,400 + $394,800 + ($197,600 - $189,100) = $649,450.

Consider the Following Budget Information: Materials to Be Used Totals