Using the information below for Singing Dolls, Inc., determine cost of goods manufactured for the year: $$\begin{array} { l | r }
\hline \text { Work in Procest, January 1 } & 50,000 \
\hline \text { Work in Process, December 31 } & 37,000 \
\hline \text { Total Factory overhead } & 5,500 \
\hline \text { Direct materials used } & \$ 12,500 \
\hline \text { Direct labor used } & 26,500
\end{array}$$
A) $44,500.
B) $94,500.
C) $13,000.
D) $57,500.
E) $52,000.

Question

Using the information below for Singing Dolls, Inc., determine cost of goods manufactured for the year: $$\begin{array} { l | r } 
\hline \text { Work in Procest, January 1 } & 50,000 \
\hline \text { Work in Process, December 31 } & 37,000 \
\hline \text { Total Factory overhead } & 5,500 \
\hline \text { Direct materials used } & \$ 12,500 \
\hline \text { Direct labor used } & 26,500
\end{array}$$
A) $44,500.
B) $94,500.
C) $13,000.
D) $57,500.
E) $52,000.

Quizplus · Accepted Answer

The formula for cost of goods manufactured is as follows:

Cost of Goods Manufactured = Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory

The information provided in the problem is as follows:

Beginning Work in Process Inventory: $0
Direct Materials Used: $30,000
Direct Labor: $18,000
Manufacturing Overhead: $15,000
Ending Work in Process Inventory: $6,500

Using the formula, we can calculate the cost of goods manufactured as follows:

Cost of Goods Manufactured = $0 + $30,000 + $18,000 + $15,000 - $6,500
Cost of Goods Manufactured = $57,500

Therefore, the best choice is D, with an explanation that the cost of goods manufactured for Singing Dolls, Inc. is $57,500.

Using the Information Below for Singing Dolls, Inc A) $44,500