The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year?
A)$255,000
B)$251,000
C)$223,000
D)$226,000

Question

The following accounts are from last year's books at Sharp Manufacturing:   Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year?
A)$255,000 
B)$251,000 
C)$223,000 
D)$226,000

Quizplus · Accepted Answer

We need to find the cost of goods manufactured for the year. The formula for cost of goods manufactured is:
Direct materials used + Direct labor + Manufacturing overhead applied - Ending Work in process inventory = Cost of goods manufactured
From the given information, we only have the Manufacturing overhead applied based on direct labor costs, which is not enough to calculate the cost of goods manufactured. Therefore, we cannot use the information provided to calculate the correct answer.

The Following Accounts Are from Last Year's Books at Sharp