Given the following information, determine the cost of goods manufactured. $$\begin{array} { | l | r | }
\hline \text { Direct Labor Incurred } & \$ 62,000 \
\hline \text { Manufacturing Overhead Incurred } & 177,000 \
\hline \text { Direct Materials Used } & 151,000 \
\hline \text { Finished Goods Inventory, Jan. 1 } & 197,000 \
\hline \text { Finished Goods Inventory, Dec. 31 } & 99,000 \
\hline \text { Work-in-Process Inventory, Jan. 1 } & 221,000 \
\hline \text { Work-in-Process Inventory, Dec. 31 } & 108,000 \
\hline
\end{array}$$
A) $390,000
B) $503,000
C) $282,000
D) $188,000

Question

Given the following information, determine the cost of goods manufactured. $$\begin{array} { | l | r | } 
\hline \text { Direct Labor Incurred } & \$ 62,000 \
\hline \text { Manufacturing Overhead Incurred } & 177,000 \
\hline \text { Direct Materials Used } & 151,000 \
\hline \text { Finished Goods Inventory, Jan. 1 } & 197,000 \
\hline \text { Finished Goods Inventory, Dec. 31 } & 99,000 \
\hline \text { Work-in-Process Inventory, Jan. 1 } & 221,000 \
\hline \text { Work-in-Process Inventory, Dec. 31 } & 108,000 \
\hline
\end{array}$$
A) $390,000
B) $503,000
C) $282,000
D) $188,000

Quizplus · Accepted Answer

The cost of goods manufactured is the total cost of all goods that were completed during the period. We can calculate it using the following formula: Beginning inventory of work in progress + total manufacturing costs - ending inventory of work in progress. The information provided in the question does not include the beginning and ending inventory, but it does give us the total manufacturing costs, which are $503,000. Thus, the cost of goods manufactured is also $503,000. Therefore, the best choice is B.

Given the Following Information, Determine the Cost of Goods Manufactured