Geneva Steel Corporation produces large sheets of heavy gauge steel. The company showed the following amounts relating to its production for the year just completed:
-Cost of goods manufactured for the year was:

Question

Geneva Steel Corporation produces large sheets of heavy gauge steel. The company showed the following amounts relating to its production for the year just completed: 
-Cost of goods manufactured for the year was:

Quizplus · Accepted Answer

Cost of goods manufactured includes direct materials used, direct labor cost, and manufacturing overhead allocated to production during the period. Adding up all the amounts given in the table, we get:
$130,000 (direct materials)
+ $52,000 (direct labor)
+ $61,000 (manufacturing overhead applied)
= $243,000 (cost of goods manufactured)

Geneva Steel Corporation Produces Large Sheets of Heavy Gauge Steel