Ting Company started the accounting period with the following beginning balances: Raw Materials Inventory,$21,000;Work in Process Inventory,$45,000;and Finished Goods Inventory,$10,000.During the accounting period,the company purchased $30,000 of raw materials and ended the period with $8,000 in raw material inventory.Direct labor costs for the period were $60,000 and $63,000 of manufacturing overhead costs was allocated to work in process.There was no over- or underapplied overhead.Ending work in process was $41,000 and ending finished goods was $17,500.Goods were sold during the period for $162,500.The amount of cost of goods manufactured (i.e. ,amount transferred from work in process to finished goods)would be:
A) $117,500.
B) $170,000.
C) $221,000.
D) $166,000.

Question

Quizplus · Accepted Answer

Total manufacturing costs = (Beginning raw materials inventory + Purchases - Ending raw material inventory)+ Direct labor + Actual overhead costs
Total manufacturing costs = ($21,000 + $30,000 - $8,000)+ $60,000 + $63,000 = $166,000
Cost of goods manufactured = Beginning work in process + Total manufacturing costs - Ending work in process
Cost of goods manufactured = $45,000 + $166,000 - $41,000 = $170,000

Ting Company Started the Accounting Period with the Following Beginning