Question

Gail K. Company manufactures waterproof cell phone covers. During the current month, the purchasing manager purchased $26,700 of raw materials. At the beginning of the month, Gail had 50 partially completed cell phone covers on hand. The cost of these partially completed units was $7,200. At the end of the month, Gail had 0 partially completed cell phone covers; all cell phone covers had been completed. During the month, the company incurred the following costs. Material used (direct $21,300; indirect $3,700) Hourly wages paid (direct $34,100; indirect $5,900 $25,000 2 40,0 5,200 4,900 3,620 Factory rent Factory utilities Factory insurance Factory ianitorial service
What is the cost of goods manufactured for the period?

A : $73,900

B : $90,500

C : $81,600

D : $88,800

Answer 1

Answer:

D : $88,800

Explanation:

Cost of goods manufactured :

Direct Material used in production                         $ 21,300

Indirect Material used in production                       $  3,700

Direct Labour                                                           $ 34,100

Direct Labour                                                           $  5,900

Manufacturing overhead                                       $ 16,600

Total Manufacturing cost                                        $ 75100

Add:Beginning Work in process inventory            $7,200

Less: Ending Work in process inventory                $ 0      

Cost of Goods Manufactured                                 $88,800