Question

Given the following data for Coronado Industries, compute cost of goods manufactured: Direct materials used $120000 Beginning work in process $20000 Direct labor 190000 Ending work in process 10000 Manufacturing overhead 170000 Beginning finished goods 25000 Operating expenses 165000 Ending finished goods 15000
a. $460,000
b. $470,000
c. $480,000
d. $490,000

Answer 1

Answer:

cost of goods manufactured= $490,000

Explanation:

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= 20,000 + 120,000 + 190,000 + 170,000 - 10,000

cost of goods manufactured= $490,000