A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in factory overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $32,000 respectively, the cost of goods manufactured was:
A) $218,000
B) $226,000
C) $190,000
D) $222,000

Question

Quizplus · Accepted Answer

Cost of goods manufactured = Direct materials + Direct labor + Factory overhead + Change in work in process inventory= $35,000 + $73,000 + $114,000 + ($32,000 - $28,000)= $226,000

A Company Used $35,000 of Direct Materials, Incurred $73,000 in Direct