Hooter Manufacturing Company reported the following year-end information: $\begin{array}{ll}
\text {Beginning work in process inventory }&\$75,000 \
\text { Beginning raw materials inventory}& 20,000\
\text {Ending work in process inventory }&73,000 \
\text { Ending raw materials inventory}&23,000 \
\text {Raw materials purchased }& 220,000\
\text {Direct labour. }&170,000 \
\text {Manufacturing overhead }& 80,000\
\end{array}$
How much is Hooter Manufacturing's cost of goods manufactured for the year?
A)$470,000
B)$465,000
C)$469,000
D)$472,000

Question

Hooter Manufacturing Company reported the following year-end information: $\begin{array}{ll}
\text {Beginning work in process inventory }&\$75,000 \
\text { Beginning raw materials inventory}& 20,000\
\text {Ending work in process inventory  }&73,000 \
\text { Ending raw materials inventory}&23,000 \
\text {Raw materials purchased  }& 220,000\
\text {Direct labour.  }&170,000 \
\text {Manufacturing overhead }& 80,000\
\end{array}$
 How much is Hooter Manufacturing's cost of goods manufactured for the year?
A)$470,000
B)$465,000
C)$469,000
D)$472,000

Quizplus · Accepted Answer

The cost of goods manufactured is calculated as: Beginning WIP Inventory + Total Manufacturing Costs - Ending WIP Inventory. Total Manufacturing Costs = Direct Materials Used + Direct Labor + Manufacturing Overhead. Direct Materials Used = Beginning Raw Materials Inventory + Raw Materials Purchased - Ending Raw Materials Inventory. Therefore, Direct Materials Used = $20,000 + $220,000 - $23,000 = $217,000. Total Manufacturing Costs = $217,000 + $170,000 + $80,000 = $467,000. Cost of Goods Manufactured = $75,000 + $467,000 - $73,000 = $469,000.

Hooter Manufacturing Company Reported the Following Year-End Information How Much Is Hooter Manufacturing's Cost of Goods Manufactured for work