During its first year of operations,Brown Company incurred the following product costs: Direct materials used in production $200,000;
Direct labor $175,000;and
Manufacturing overhead $145,500.
The Brown Company's ending Work in Process Inventory amounted to $35,000 at the end of the year.What is the company's cost of finished goods manufactured for the year?

Question

Quizplus · Accepted Answer

The cost of finished goods manufactured is calculated by adding direct materials, direct labor, and manufacturing overhead, then subtracting the ending work in process inventory. So, $200,000 + $175,000 + $145,500 - $35,000 = $485,500.

During Its First Year of Operations,Brown Company Incurred the Following