Reference: 03-07
The following data are for Potras Company: $$\begin{array} { | l | l | l | }
\hline & \text { Beginning } & \text { Ending } \
\hline \text { Finished goods inventory } & \$ 30,000 & \$ 40,000 \
\hline \text { Work in process inventory } & \$ 20,000 & \$ 13,000 \
\hline \text { Raw materials inventory } & \$ 21,000 & \$ 26,000 \
\hline \text { Purchases of raw materials } & \$ 71,000 & \
\hline \text { Factory depreciation } & \$ 5,000 & \
\hline \text { Other factory costs } & \$ 10,000 & \
\hline \text { Direct labour } & \$ 27,000 & \
\hline \text { Indirect labour } & \$ 6,000 & \
\hline \text { Selling expense } & \$ 12,000 & \
\hline \begin{array} { l }
\text { Overapplied or underapplied } \
\text { overhead }
\end{array} & - 0 - & \
\hline
\end{array}$$
-The cost of goods manufactured was?
A)$114,000.
B)$133,000.
C)$138,000.
D)$121,000.

Question

Reference: 03-07
The following data are for Potras Company: $$\begin{array} { | l | l | l | } 
\hline & \text { Beginning } & \text { Ending } \
\hline \text { Finished goods inventory } & \$ 30,000 & \$ 40,000 \
\hline \text { Work in process inventory } & \$ 20,000 & \$ 13,000 \
\hline \text { Raw materials inventory } & \$ 21,000 & \$ 26,000 \
\hline \text { Purchases of raw materials } & \$ 71,000 & \
\hline \text { Factory depreciation } & \$ 5,000 & \
\hline \text { Other factory costs } & \$ 10,000 & \
\hline \text { Direct labour } & \$ 27,000 & \
\hline \text { Indirect labour } & \$ 6,000 & \
\hline \text { Selling expense } & \$ 12,000 & \
\hline \begin{array} { l } 
\text { Overapplied or underapplied } \
\text { overhead }
\end{array} & - 0 - & \
\hline
\end{array}$$
-The cost of goods manufactured was?
A)$114,000.
B)$133,000.
C)$138,000.
D)$121,000.

Quizplus · Accepted Answer

The cost of goods manufactured can be calculated as follows: 1. Start with the total manufacturing costs, which include direct materials, direct labor, and manufacturing overhead.    - Direct materials used = Beginning raw materials + Purchases of raw materials - Ending raw materials = $21,000 + $71,000 - $26,000 = $66,000.   - Direct labor = $27,000.   - Manufacturing overhead = Factory depreciation + Other factory costs + Indirect labor = $5,000 + $10,000 + $6,000 = $21,000.   - Total manufacturing costs = Direct materials used + Direct labor + Manufacturing overhead = $66,000 + $27,000 + $21,000 = $114,000.2. Add the beginning work in process inventory and subtract the ending work in process inventory to get the total cost of goods manufactured.   - Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory - Ending work in process inventory = $114,000 + $20,000 - $13,000 = $121,000.

Reference: 03-07 the Following Data Are for Potras Company -The Cost of Goods Manufactured Was? A)$114,000

Reference: 03-07
the Following Data Are for Potras Company -The Cost of Goods Manufactured Was?
A)$114,000