The following information is taken from the financial records of Gunner Manufacturing: What is cost of goods manufactured?
A)$178,000
B)$132,000
C)$122,000
D)$142,000

Question

The following information is taken from the financial records of Gunner Manufacturing:  What is cost of goods manufactured?
A)$178,000 
B)$132,000 
C)$122,000 
D)$142,000

Quizplus · Accepted Answer

Cost of goods manufactured is calculated using the formula: Beginning inventory + purchases - ending inventory + direct labor + direct materials + manufacturing overhead. Based on the given information, the calculation would be: $30,000 + $110,000 - $27,000 + $40,000 + $35,000 + $34,000 = $122,000. Therefore, the correct answer is C.

The Following Information Is Taken from the Financial Records of Gunner