Using the information below for Talking Toys, Inc., determine cost of goods manufactured for the year:
A) $13,000.
B) $44,500.
C) $57,500.
D) $94,500.
E) $52,000.

Question

Using the information below for Talking Toys, Inc., determine cost of goods manufactured for the year: 
A) $13,000. 
B) $44,500. 
C) $57,500. 
D) $94,500. 
E) $52,000.

Quizplus · Accepted Answer

Cost of goods manufactured can be calculated using the formula: 
Beginning inventory of work in progress + Total manufacturing costs - Ending inventory of work in progress.
Beginning inventory of work in progress = $8,000, Total manufacturing costs = $53,500, and Ending inventory of work in progress = $4,000. 
Therefore, cost of goods manufactured = $8,000 + $53,500 - $4,000 = $57,500.

Using the Information Below for Talking Toys, Inc