Question

Swifty Corporation reported the following year-end information: Beginning work in process inventory $1080000 Beginning raw materials inventory 300000 Ending work in process inventory 900000 Ending raw materials inventory 480000 Raw materials purchased 1060000 Direct labor 820000 Manufacturing overhead 820000 Swifty Corporation's cost of goods manufactured for the year is $2700000. $2340000. $2880000. $2520000.

Answer 1

Answer:

$27,000,000

Explanation:

Cost of Goods Manufactured = Direct Material Used + Direct Labor + Manufacturing Overhead + Opening Work In Progress - Closing Work In Progress

When Direct Material Used =  Beginning raw materials inventory + Raw materials purchased + Ending raw materials inventory

Direct Material Used = 300,000  + 1,060,000 - 480,000 = 880,000

Direct Material Used =  $880,000

Hence, Cost of Goods Manufactured = 880,000 + 820,000 + 820,000 + 1,080,000 - 900,000

Cost of Goods Manufactured= $27,000,000

Swifty Corporation's cost of goods manufactured for the year is $27,000,000