Current information for the Healey Company follows: All raw materials used were traceable to specific units of product.
-Healey Company's cost of goods manufactured for the year is:
A)$125,800.
B)$128,600.
C)$131,400.
D)$137,000.
E)$139,000.

Question

Current information for the Healey Company follows: All raw materials used were traceable to specific units of product.
-Healey Company's cost of goods manufactured for the year is:
A)$125,800. 
B)$128,600. 
C)$131,400. 
D)$137,000. 
E)$139,000.

Quizplus · Accepted Answer

The cost of goods manufactured is calculated as the sum of direct materials used, direct labor, and manufacturing overhead. In this case, the direct materials used are $50,000, the direct labor is $40,000, and the manufacturing overhead is $35,800. Therefore, the cost of goods manufactured is $50,000 + $40,000 + $35,800 = $125,800.

Current Information for the Healey Company Follows: All Raw Materials