A corporation used $34,000 of direct materials and incurred $74,000 in direct labor cost,and $112,500 in manufacturing overhead costs during the period.What is the cost of goods manufactured if the beginning and ending Work-in-Process Inventories were $27,500 and $20,500,respectively?
A)$248,000
B)$227,500
C)$213,500
D)$220,500

Question

Quizplus · Accepted Answer

B)Cost of goods manufactured = Beginning Work-in-Process Inventory + Direct Materials + Direct Labor Cost + Manufacturing Overhead Costs - Ending Work-in-Process Inventory = $27,500 + $34,000 + $74,000 + $112,500 - $20,500 = $227,500

A Corporation Used $34,000 of Direct Materials and Incurred $74,000