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adoni [48]
3 years ago
7

Lucas Diving Supplies Company, in its first year of business, had labor costs of $57,000, overhead costs of $88,000, materials p

urchases of $25,000, and ending Materials and Work-in-Process Inventories of $3,000 and $5,000, respectively. What is the amount of cost of goods manufactured in the first year of operations
Business
1 answer:
WARRIOR [948]3 years ago
7 0

Answer:

$162,000

Explanation:

The amount of cost of goods manufactured is computed as

= Labor cost + Direct materials purchased + overhead costs - ending balance of materials - ending balance of work in process

= $57,000 + $25,000 + $88,000 - $3,000 - $5,000

= $162,000

Hence, the cost of goods manufactured is $162,000

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