Question

Lucas Diving Supplies Company, in its first year of business, had labor costs of $66,000, overhead costs of $98,000, materials purchases of $22,000, and ending materials and work-in-process inventories of $1,000 and $2,000, respectively. What is the amount of cost of goods manufactured in the first year of operations

Answer 1

Answer:

the cost of goods manufactured is $183,000

Explanation:

The computation of the cost of goods manufactured is shown below:

Cost of goods manufactured = Labor cost + direct material purchased + overhead cost - ending balance of material - ending balance of work in process

= $66,000 + $22,000 + $98,000 - $1,000 - $2,000

= $183,000

Hence, the cost of goods manufactured is $183,000