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FrozenT [24]
3 years ago
15

Consider Derek's budget information: materials to be used totals $62,100; direct labor totals $198,200; factory overhead totals

$403,100; work in process inventory January 1 is $187,500; and work in progress inventory on December 31 is $195,000. The budgeted cost of goods manufactured for the year is
Business
1 answer:
Katen [24]3 years ago
8 0

Answer:

Cost of goods manufactured  655,900

Explanation:

<em>First, we add the three cost component:</em>

materials used in production                 62,100

direct labor                                            198,200

overhead                                               403,100

total cost added during the period    663,400

<em>Then, using the WIP beginning and ending figures, we solve for cost of goods manufactured</em>

WIP         january 1st                 187,500

cost added                              663,400

WP endind                           <u>   (195,000)  </u>

Cost of goods manufactured  655,900

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