Question

The following information is taken from the financial records of Gunner Manufacturing: Cost of materials used $45,000 Direct labor costs 48,000 Factory overhead 39,000 Work in process, beginning 18,000 Work in process, ending 28,000 What is the cost of goods manufactured? a.$132,000 b.$178,000 c.$142,000 d.$122,000

Answer 1

Answer:

c.$142,000

Explanation:

The cost of goods manufactured is a function of the direct and indirect costs incurred in the manufacturing process. This will also include the cost incurred on work in process.

As such, Given;

Cost of materials used = $45,000

Direct labor costs = $48,000

Factory overhead = $39,000

Work in process, beginning = $18,000

Work in process, ending = $28,000

The cost of goods manufactured = $45,000 + $48,000 + $39,000 + $28,000 - $18,000

= $142,000

Answer 2

Answer:

d. $ 122,000 - Cost of goods manufactured

Explanation:

The cost of goods manufactured is the sum of all the inputs adjusted for change in work in process balance.

Materials Used                                                               $ 45,000

Direct Labor costs                                                          $ 48,000

Factory Overhead                                                          $ 39,000

Total manufacturing input                                          $ 132,000

Add; Beginning work in process                                 $   18,000

Less: Closing work in process                                     $ ( 28,000)            

Cost of goods manufactured                                     $ 122,000