Current information for the Austin Company follows:
All raw materials used were traceable to specific batches of product.Austin Company's cost of goods manufactured for the year is:
A)$125,800.
B)$128,600.
C)$131,400.
D)$137,000.
E)$139,000.

Question

Current information for the Austin Company follows:
 All raw materials used were traceable to specific batches of product.Austin Company's cost of goods manufactured for the year is:
A)$125,800. 
B)$128,600. 
C)$131,400. 
D)$137,000. 
E)$139,000.

Quizplus · Accepted Answer

Cost of Goods Manufactured = Raw Materials Used + Direct Labor + Factory Overhead + Beginning Goods in Process - Ending Goods in Process
Cost of Goods Manufactured = (Beginning Raw Materials + Raw Materials Purchased - Ending Raw Materials) + $42,800 + $30,000 + $22,400 - $28,000
Cost of Goods Manufactured = $15,200 + $60,000 - $16,600 + $42,800 + $30,000 + $22,400 - $28,000 = $125,800

Current Information for the Austin Company Follows