Question

Dess Inc., a manufacturing company, has provided the following data for the month of August. The balance in the Work in Process inventory account was $10,000 at the beginning of the month and $22,000 at the end of the month. During the month, the used direct material cost was $63,000, and direct labor cost was $39,000. The manufacturing overhead cost was $43,000.
1. The manufacturing costs for August was:
A. $59,000
B. $67,000
C. $145,000
D. $133,000
2. The cost of goods manufactured for August was:
A. $133,000
B. $142,000
C. $145,000
D. $130,000

Answer 1

Answer:

See below

Explanation:

1. Manufacturing cost. This is computed as

= Direct materials + Direct labor + Manufacturing overhead

= $63,000 + $39,000 + $43,000

= $145,000

2. Cost of goods manufactured. This is computed as;

= Beginning WIP + Direct materials + Direct labor + Allocated manufacturing overhead - Ending WIP

= $10,000 + $63,000 + $39,000 + $43,000 - $22,000

= $133,000