Fitness Company reports the following data for 2009, its first year of operations:
$$\begin{array} { | l | r | }
\hline \text { Cost of goods manufactured } & \$ 440,000 \
\hline \text { Work in process inventory, Dec. } 31,2009 & 130,000 \
\hline \text { Direct materials used } & 115,000 \
\hline \text { Manufacturing overhead incurred } & 160,000 \
\hline \text { Finished goods inventory, Dec. } 31,2009 & 75,000 \
\hline
\end{array}$$ What are the total manufacturing costs to be accounted for?
A) $300,000
B) $190,000
C) $160,000
D) $570,000

Question

Fitness Company reports the following data for 2009, its first year of operations:
$$\begin{array} { | l | r | } 
\hline \text { Cost of goods manufactured } & \$ 440,000 \
\hline \text { Work in process inventory, Dec. } 31,2009 & 130,000 \
\hline \text { Direct materials used } & 115,000 \
\hline \text { Manufacturing overhead incurred } & 160,000 \
\hline \text { Finished goods inventory, Dec. } 31,2009 & 75,000 \
\hline
\end{array}$$ What are the total manufacturing costs to be accounted for?
A) $300,000
B) $190,000
C) $160,000
D) $570,000

Quizplus · Accepted Answer

Total manufacturing costs to be accounted for include direct materials used, manufacturing overhead incurred, and the cost of goods manufactured. Thus, the total is $115,000 (direct materials) + $160,000 (manufacturing overhead) + $440,000 (cost of goods manufactured) = $715,000. However, since none of the provided options match this calculation, it appears there may have been a misunderstanding in the question's intent or a mistake in the calculation. Based on the options given and typical accounting practices, the closest answer reflecting an understanding of total manufacturing costs would involve adding direct materials, manufacturing overhead, and direct labor (not explicitly given here). Since the provided options and data do not align with standard calculations for total manufacturing costs, the response assumes a potential error in the question or answer choices.

Fitness Company Reports the Following Data for 2009, Its First