A corporation used $35,000 of direct materials and incurred $73,000 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 $28,000 and $21,500,respectively?
A) $248,500
B) $227,000
C) $214,000
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 = $28,000 + $35,000 + $73,000 + $112,500 - $21,500 = $227,000

A Corporation Used $35,000 of Direct Materials and Incurred $73,000