Question

Rediger Incorporated a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $41,000 at the beginning of the month and $26,500 at the end of the month. During the month, the Corporation incurred direct materials cost of $58,800 and direct labor cost of $33,700. The actual manufacturing overhead cost incurred was $54,900. The manufacturing overhead cost applied to Work in Process was $54,800. The cost of goods manufactured for June was:

Answer 1

Answer:

cost of goods manufactured= $161,800

Explanation:

Giving the following information:

Beginning Work in Process inventory= $41,000

Ending Work in Process inventory= $26,500

Direct materials= $58,800

Direct labor cost= $33,700.

The manufacturing overhead cost applied to Work in Process was $54,800.

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 41,000 + 58,800 + 33,700 + 54,800 - 26,500

cost of goods manufactured= $161,800