Answer:
The correct answer would be option E, $57,500.
Explanation:
Total manufacturing cost
= direct materials + direct labor + factory overhead + beginning work in process inventory - ending goods in process inventory.
Work in process Jan 1, $50,000;
Work in process Dec 31, $37,000;
total factory overhead, $5,500;
direct materials used, $12,500;
direct labor used, $26,500
Now substituting the values in the above formula we get:
Total Cost of Goods Manufactured=
50000 + 55000 + 5500 + 12500 + 26500 - 37000
= 94500 - 37000
= $57500
So The cost of goods manufactured during the year will be option E, $57500
