Use the following data to determine the cost of goods manufactured:

A)$102,000.
B)$110,100.
C)$96,600.
D)$113,700.
E)$100,200.

Question

Use the following data to determine the cost of goods manufactured:

A)$102,000. 
B)$110,100. 
C)$96,600. 
D)$113,700. 
E)$100,200.

Quizplus · Accepted Answer

The cost of goods manufactured is calculated by adding the total manufacturing costs (direct materials used, direct labor, and factory overhead) to the beginning work in process inventory and subtracting the ending work in process inventory.

Beginning work in process: $25,800 
Direct materials used: $32,100 
Direct labor: $21,600 
Factory overhead: $17,100 
Total manufacturing costs: $70,800 
Ending work in process: $11,400

Cost of goods manufactured: 
= Beginning work in process + Total manufacturing costs - Ending work in process 
= $25,800 + $70,800 - $11,400 
= $96,600

Use the Following Data to Determine the Cost of Goods