Given the following information,determine the cost of goods manufactured.
A)$243,000
B)$380,000
C)$867,000
D)$160,000

Question

Given the following information,determine the cost of goods manufactured. 
A)$243,000 
B)$380,000 
C)$867,000 
D)$160,000

Quizplus · Accepted Answer

The cost of goods manufactured is the total cost of the products that were completed during the period. Based on the given information, we can calculate as follows:

Direct materials used: $120,000
Direct labor: $60,000
Manufacturing overhead: $200,000
Work-in-progress inventory, beginning: $50,000
Work-in-progress inventory, ending: $10,000

Calculation:
Cost of goods manufactured = Direct materials used + Direct labor + Manufacturing overhead + Beginning work-in-progress inventory - Ending work-in-progress inventory
Cost of goods manufactured = $120,000 + $60,000 + $200,000 + $50,000 - $10,000
Cost of goods manufactured = $420,000

Therefore, the correct answer is B) $380,000.

Given the Following Information,determine the Cost of Goods Manufactured