Compute cost of goods manufactured for this period given the following amounts.
A)$72,000
B)$48,000
C)$60,000
D)$66,000
E)$180,000.

Question

Compute cost of goods manufactured for this period given the following amounts. 
A)$72,000 
B)$48,000 
C)$60,000 
D)$66,000 
E)$180,000.

Quizplus · Accepted Answer

Cost of goods manufactured can be calculated as follows:
Beginning Work-In-Process Inventory + Total Manufacturing Costs during the Period - Ending Work-In-Process Inventory = Cost of Goods Manufactured
Beginning Work-In-Process Inventory = $0 (Assumed)
Total Manufacturing Costs during the Period = Direct Materials + Direct Labor + Manufacturing Overhead = $20,000 + $22,000 + $18,000 = $60,000
Ending Work-In-Process Inventory = $0 (Assumed)
Therefore, Cost of Goods Manufactured = $0 + $60,000 - $0 = $60,000. 
Hence, the correct choice is C.

Compute Cost of Goods Manufactured for This Period Given the Following