If the cost of the beginning work in process inventory is $60,000, direct materials cost is $350,000, direct labor cost is $216,000, and overhead cost is $319,000, and the ending work in process inventory is $55,000, calculate the cost of goods manufactured:
A) $571,000.
B) $1,000,000.
C) $885,000.
D) $890,000.
E) $945,000.

Question

Quizplus · Accepted Answer

The cost of goods manufactured is calculated as: Beginning WIP Inventory + Direct Materials + Direct Labor + Overhead - Ending WIP Inventory = $60,000 + $350,000 + $216,000 + $319,000 - $55,000 = $890,000.

If the Cost of the Beginning Work in Process Inventory