The following partially completed T-accounts summarize transactions for Farwest Corporation during the year: The Cost of Goods Manufactured was:
A)$22,900
B)$26,300
C)$6,400
D)$49,200

Question

The following partially completed T-accounts summarize transactions for Farwest Corporation during the year:       The Cost of Goods Manufactured was:
A)$22,900 
B)$26,300 
C)$6,400 
D)$49,200

Quizplus · Accepted Answer

The cost of goods manufactured is the total cost of goods completed during the period. To calculate it, we need to add up the costs incurred in the factory during the year and subtract the ending balance of Work in Process inventory. From the T-accounts given, we can see that the total factory costs for the year were $52,900 ($31,800 + $3,800 + $2,500 + $2,400 + $12,400). The ending balance of Work in Process inventory was $26,600. Therefore, the cost of goods manufactured was $26,300 ($52,900 - $26,600).

The Following Partially Completed T-Accounts Summarize Transactions for Farwest Corporation