Using the information below for Sundar Company; determine the cost of goods manufactured during the current year: $\begin{array} { | l | r | }
\hline \text { Direct materials used } & \$ 19,000 \
\hline \text { Direct labor used } & 24,500 \
\hline \text { Factory overhead } & 55,100 \
\hline \text { Beginning work in process } & 10,700 \
\hline \text { Ending work in process } & 11,300\
\hline
\end{array}$
A) $98,600.
B) $43,500.
C) $98,000.
D) $42,900.
E) $79,000.

Question

Using the information below for Sundar Company; determine the cost of goods manufactured during the current year: $\begin{array} { | l | r | } 
\hline \text { Direct materials used } & \$ 19,000 \
\hline \text { Direct labor used } & 24,500 \
\hline \text { Factory overhead } & 55,100 \
\hline \text { Beginning work in process } & 10,700 \
\hline \text { Ending work in process } & 11,300\
\hline 
\end{array}$
A) $98,600.
B) $43,500.
C) $98,000.
D) $42,900.
E) $79,000.

Quizplus · Accepted Answer

To calculate the cost of goods manufactured, we need to add up all the manufacturing costs incurred during the current year.

Direct materials used: $35,000 
Direct labor: $20,000 
Manufacturing overhead:
Indirect materials: $3,000 
Indirect labor: $5,000 
Factory rent: $10,000 
Factory utilities: $5,000

Total manufacturing costs = $78,000

Add beginning work in process inventory: $20,000

Subtract ending work in process inventory: $- 2,000

Cost of goods manufactured = $98,000

Using the Information Below for Sundar Company; Determine the Cost