The accounting records of Bronco Company revealed the following information: $$\begin{array} { l r }
\text { Raw materials used } & \$ 60,000 \
\text { Direct labor } & 125,000 \
\text { Manufacturing overhead } & 360,000 \
\text { Work-in-process inventory, 1/1 } & 50,000 \
\text { Finished-goods inventory, 1/1 } & 189,000 \
\text { Work-in-process inventory, 12/31 } & 76,000 \
\text { Finished-goods inventory, } 12 / 31 & 140,000
\end{array}$$ Bronco's cost of goods manufactured is:
A) $519,000.
B) $522,000.
C) $568,000.
D) $571,000.
E) None of the other answers are correct.

Question

The accounting records of Bronco Company revealed the following information: $$\begin{array} { l r } 
\text { Raw materials used } & \$ 60,000 \
\text { Direct labor } & 125,000 \
\text { Manufacturing overhead } & 360,000 \
\text { Work-in-process inventory, 1/1 } & 50,000 \
\text { Finished-goods inventory, 1/1 } & 189,000 \
\text { Work-in-process inventory, 12/31 } & 76,000 \
\text { Finished-goods inventory, } 12 / 31 & 140,000
\end{array}$$ Bronco's cost of goods manufactured is:
A) $519,000.
B) $522,000.
C) $568,000.
D) $571,000.
E) None of the other answers are correct.

Quizplus · Accepted Answer

Cost of Goods Manufactured = (Raw Materials Used + Direct Labor + Manufacturing Overhead + Beginning Work-in-Process Inventory) - Ending Work-in-Process Inventory = ($60,000 + $125,000 + $360,000 + $50,000) - $76,000 = $519,000.

The Accounting Records of Bronco Company Revealed the Following Information