Given the following information,determine the cost of goods manufactured. $$\begin{array} { | l | r | }
\hline \text { Direct Labor Incurred } & \$ 60,000 \
\hline \text { Manufacturing Overhead Incurred } & 177,000 \
\hline \text { Direct Materials Used } & 150,000 \
\hline \text { Finished Goods Inventory, Jan. 1 } & 199,000 \
\hline \text { Finished Goods Inventory, Dec. 31 } & 98,500 \
\hline \text { Work-in-Process Inventory, Jan. 1 } & 221,000 \
\hline \text { Work-in-Process Inventory, Dec. 31 } & 108,000 \
\hline
\end{array}$$
A) $387,000
B) $500,000
C) $279,000
D) $189,500

Question

Given the following information,determine the cost of goods manufactured. $$\begin{array} { | l | r | } 
\hline \text { Direct Labor Incurred } & \$ 60,000 \
\hline \text { Manufacturing Overhead Incurred } & 177,000 \
\hline \text { Direct Materials Used } & 150,000 \
\hline \text { Finished Goods Inventory, Jan. 1 } & 199,000 \
\hline \text { Finished Goods Inventory, Dec. 31 } & 98,500 \
\hline \text { Work-in-Process Inventory, Jan. 1 } & 221,000 \
\hline \text { Work-in-Process Inventory, Dec. 31 } & 108,000 \
\hline
\end{array}$$
A) $387,000
B) $500,000
C) $279,000
D) $189,500

Quizplus · Accepted Answer

The cost of goods manufactured is calculated by adding direct labor, manufacturing overhead, and direct materials used, then adjusting for the change in work-in-process inventory. This gives: $60,000 (Direct Labor) + $177,000 (Manufacturing Overhead) + $150,000 (Direct Materials) = $387,000. Then, adjust for work-in-process inventory: Add the beginning work-in-process inventory ($221,000) and subtract the ending work-in-process inventory ($108,000). The calculation is $387,000 + $221,000 - $108,000 = $500,000.

Given the Following Information,determine the Cost of Goods Manufactured A) $387,000 B) $500,000 C) $279,000 D) $189,500

Given the Following Information,determine the Cost of Goods Manufactured A) $387,000
B) $500,000
C) $279,000
D) $189,500