The cost of goods manufactured for August is closest to:

Question

Quizplus · Accepted Answer

To calculate the cost of goods manufactured, we need to add total manufacturing costs (direct materials, direct labor, and manufacturing overhead) to the beginning work in process inventory and subtract the ending work in process inventory.

Total manufacturing costs = $155,000 + $88,000 + $57,000 = $300,000
Beginning work in process inventory = $35,000
Ending work in process inventory = $8,000

Cost of goods manufactured = $300,000 + $35,000 - $8,000 = $327,000
Round off to the nearest thousand, the cost of goods manufactured for August is $147,000, which is closest to choice B.

The Cost of Goods Manufactured for August Is Closest To