T-accounts for the inventory accounts of the Arturo Manufacturing Company are shown below. This data represents transactions for the year of 2012.
- Based on the data shown here, what was the amount of the cost of goods manufactured?
A) $607,000
B) $192,000
C) $28,000
D) $591,000

Question

T-accounts for the inventory accounts of the Arturo Manufacturing Company are shown below. This data represents transactions for the year of 2012. 
- Based on the data shown here, what was the amount of the cost of goods manufactured?
A) $607,000 
B) $192,000 
C) $28,000 
D) $591,000

Quizplus · Accepted Answer

To calculate the cost of goods manufactured, we need to add the beginning inventory to the total manufacturing costs for the year and then subtract the ending inventory.

Beginning inventory = $40,000 
Total manufacturing costs = $551,000 (direct materials $215,000 + direct labor $172,000 + manufacturing overhead $164,000) 
Ending inventory = $0

Cost of goods manufactured = $40,000 + $551,000 - $0 = $591,000

Therefore, the correct answer is D.

T-Accounts for the Inventory Accounts of the Arturo Manufacturing Company