The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year: The Cost of Goods Manufactured was:
A) $19,900
B) $21,700
C) $41,600
D) $7,700

Question

The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year:       The Cost of Goods Manufactured was:
A) $19,900 
B) $21,700 
C) $41,600 
D) $7,700

Quizplus · Accepted Answer

The Cost of Goods Manufactured formula is: Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory. 
- The beginning balance in Work in Process Inventory is $8,500
- Direct materials cost incurred during the year is $16,200
- Direct labor cost incurred during the year is $12,000
- Manufacturing overhead costs incurred during the year is $6,500
- Ending Work in Process Inventory balance is $11,500
Therefore, the Cost of Goods Manufactured is: 
$8,500 + ($16,200 + $12,000 + $6,500) - $11,500 = $21,700. 
Therefore, the answer is B.

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