Question

Beginning work in process was $145,000. Manufacturing cost incurred for the month was $810,000. The ending work in process was $200,000. What was the cost of goods manufactured during the month?

Answer 1

Answer:

cost of goods manufactured= $755,000

Explanation:

Giving the following information:

Beginning work in process was $145,000.

Manufacturing cost incurred for the month was $810,000.

The ending work in process was $200,000.

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 145,000 + 810,000 - 200,000

cost of goods manufactured= $755,000