Using the information below for Sundar Company;determine the cost of goods manufactured during the current year:
A)$98,600.
B)$43,500.
C)$98,000.
D)$42,900.
E)$79,000.

Question

Using the information below for Sundar Company;determine the cost of goods manufactured during the current year: 
A)$98,600. 
B)$43,500. 
C)$98,000. 
D)$42,900. 
E)$79,000.

Quizplus · Accepted Answer

To determine the cost of goods manufactured, we need to add the total manufacturing costs to the beginning work in process inventory and subtract the ending work in process inventory. 
Beginning work in process inventory = $9,600 
Direct materials used = $50,000 
Direct labor = $18,000 
Manufacturing overhead = $30,000 
Total manufacturing costs = $98,000 
Ending work in process inventory = $0

Cost of goods manufactured = $9,600 + $50,000 + $18,000 + $30,000 - $0 = $98,600. Therefore, the correct answer is C.

Using the Information Below for Sundar Company;determine the Cost of Goods