Question

The Raw Materials Inventory account had a beginning balance of $ 15000 and an ending balance of $ 20000. During the​ year, the company purchased $ 59,000 of direct materials. Direct labor for the year totaled $ 128000​, while manufacturing overhead amounted to $ 152,000. The Work in Process Inventory account had a beginning balance of $ 21,000 and an ending balance of $ 19,000.
Assume that Raw Materials Inventory contains only direct materials. Compute the Cost of Goods Manufactured for the year.

Answer 1

Answer:

The Cost of Goods Manufactured for the year is $341,000

Explanation:

The computation the cost of goods manufactured is shown below:

= Beginning balance of work in process inventory + total manufacturing costs - ending balance of work in progress inventory

= $21,000 + $339,000 - $19,000

= $341,000

where,

Total manufacturing costs = direct materials cost + direct labor cost + manufacturing overhead cost

= $59,000 + $128,000 + $152,000

= $339,000