Calculate the cost of goods manufactured using the following information:
A) $680,500.
B) $701,900.
C) $687,100.
D) $674,600.
E) $772,600.

Question

Calculate the cost of goods manufactured using the following information: 
A) $680,500. 
B) $701,900. 
C) $687,100. 
D) $674,600. 
E) $772,600.

Quizplus · Accepted Answer

Beginning raw materials inventory = $35,000
Raw materials purchases = $345,000
Ending raw materials inventory = $33,000
Direct labor = $180,000
Factory overhead = $138,500
Beginning work in process inventory = $41,000
Ending work in process inventory = $61,000
Therefore, the cost of goods manufactured = Beginning WIP inventory + Direct materials used + Direct labor + Factory overhead - Ending WIP inventory
= $41,000 + ($345,000 + $35,000 - $33,000) + $180,000 + $138,500 - $61,000
= $687,100

Calculate the Cost of Goods Manufactured Using the Following Information