Question

Demur Inc., a manufacturing company, has provided the following data for the month of April. The balance in the Work-in-Process Inventory account was $10,800 at the beginning of the month and $22,800 at the end of the month. During the month, the company incurred direct materials cost of $63,800 and direct labor cost of $39,800. The actual manufacturing overhead cost incurred was $40,800. The manufacturing overhead cost applied to Work-in-Process was $43,800. The cost of goods manufactured for April was:\

Answer 1

Answer:

$135,400

Explanation:

Given that,

Beginning Work-in-Process Inventory = $10,800

Ending Work-in-Process Inventory = $22,800

Direct materials cost = $63,800

Direct labor cost = $39,800

Actual manufacturing overhead cost = $40,800

Manufacturing overhead cost applied to Work-in-Process = $43,800

Prime cost = Direct materials cost + Direct labor cost

                  = $63,800 + $39,800

                  = $103,600

Factory cost = Prime cost + Manufacturing overhead cost applied

                     = $103,600 + $43,800

                     = $147,400

Cost of goods manufactured for April:

= Factory cost + Beginning Work-in-Process Inventory - Ending Work-in-Process Inventory

= $147,400 + $10,800 - $22,800

= $135,400