Use the cost information below for Ruiz,Inc.to determine cost of goods manufactured for the year:
A)$13,000.
B)$44,500.
C)$57,500.
D)$94,500.
E)$52,000.

Question

Use the cost information below for Ruiz,Inc.to determine cost of goods manufactured for the year: 
A)$13,000. 
B)$44,500. 
C)$57,500. 
D)$94,500. 
E)$52,000.

Quizplus · Accepted Answer

The cost of goods manufactured is the sum of beginning work in process inventory, direct materials used, direct labor, and manufacturing overhead minus ending work in process inventory. From the given information, we have:
Beginning work in process inventory = $0
Direct materials used = $23,000
Direct labor = $20,000
Manufacturing overhead = $14,500
Ending work in process inventory = $0
Therefore, cost of goods manufactured = $23,000 + $20,000 + $14,500 - $0 = $57,500.

Use the Cost Information Below for Ruiz,Inc