Question

If the cost of the beginning work in process inventory is $50,000, direct materials cost is $340,000, direct labor cost is $206,000, an overhead cost is $309,000, and the ending work in process inventory is $45,000, calculate the cost of goods manufactured:

Answer 1

Answer:

The cost of goods manufactured is $860,000

Explanation:

The cost of goods manufactured = The cost of the beginning work in process inventory + direct materials cost + direct labor cost + overhead cost - the ending work in process inventory.

The company has the cost of the beginning work in process inventory is $50,000, direct materials cost is $340,000, direct labor cost is $206,000, an overhead cost is $309,000, and the ending work in process inventory is $45,000

The cost of goods manufactured = $50,000 + $340,000 + $206,000 + $309,000 - $45,000 = $860,000