Assume Outback Heaters issued $36 000 of direct materials to production, total direct labour costs were $20 000 and total overhead costs were $30 000. If work in process at the start was $12 000 and work in process at the end was $15 000, what is the total cost of goods manufactured for the period?

Question

Quizplus · Accepted Answer

The total cost of goods manufactured is calculated by adding the beginning work in process to the total manufacturing costs (direct materials, direct labor, and overhead) and then subtracting the ending work in process. So, $12,000 (beginning WIP) + $36,000 (direct materials) + $20,000 (direct labor) + $30,000 (overhead) - $15,000 (ending WIP) = $83,000.

Assume Outback Heaters Issued $36 000 of Direct Materials to Production