Question

If the cost of the beginning work in process inventory is $56,000, direct materials cost is $346,000, direct labor cost is $212,000, and overhead cost is $315,000, and the ending work in process inventory is $51,000, calculate the cost of goods manufactured:a. $980,000.b. $563,000.c. $873,000.d. $878,000.e. $929,000.

Answer 1

Answer:

d. $878,000

Explanation:

The computation of the cost of goods manufactured is shown below:

= Direct materials cost + Direct labor cost + Manufacturing overhead cost + beginning work-in- process inventory - ending work-in-process inventory

= $346,000 + $212,000 + $315,000 + $56,000 - $51,000

= $878,000

We simply deduct the ending balance of work in process inventory and the rest items are added to find out the cost of goods manufactured