A company had beginning inventories as follows: Direct Materials,$300;Work-in-Process,$500;Finished Goods,$700.It had ending inventories as follows: Direct Materials,$400;Work-in-Process,$600;Finished Goods,$800.Material Purchases (net including freight)were $1,400,Direct Labor $1,500,and Manufacturing Overhead $1,600.What is the Cost of Goods Sold for the period?
A)$4,100.
B)$4,200.
C)$4,300.
D)$4,400.

Question

Quizplus · Accepted Answer

Beginning inventory = Direct Materials ($300) + Work-in-Process ($500) + Finished Goods ($700) = $1,500
Ending inventory = Direct Materials ($400) + Work-in-Process ($600) + Finished Goods ($800) = $1,800
Total manufacturing costs = Material Purchases ($1,400) + Direct Labor ($1,500) + Manufacturing Overhead ($1,600) = $4,500
Cost of Goods Sold = Beginning inventory + Total manufacturing costs - Ending inventory
Cost of Goods Sold = $1,500 + $4,500 - $1,800 = $4,200. 
Therefore, the answer is B.

A Company Had Beginning Inventories as Follows: Direct Materials,$300;Work-In-Process,$500;Finished Goods,$700