During April,the CJG Manufacturing Company had the following operating results: What is the cost of goods manufactured for April?
A)$900,000
B)$875,000
C)$925,000
D)$905,000

Question

During April,the CJG Manufacturing Company had the following operating results:  What is the cost of goods manufactured for April?
A)$900,000 
B)$875,000 
C)$925,000 
D)$905,000

Quizplus · Accepted Answer

The cost of goods manufactured is calculated as follows:

Direct Materials Used + Direct Labor + Manufacturing Overhead + Beginning Work in Progress Inventory – Ending Work in Progress Inventory = Cost of Goods Manufactured

In April, the company had: 
Direct Materials Used = $300,000 
Direct Labor = $200,000 
Manufacturing Overhead = $250,000 
Beginning Work in Progress Inventory = $100,000 
Ending Work in Progress Inventory = $75,000

Using the formula above, we can calculate that the cost of goods manufactured for April is:

$300,000 + $200,000 + $250,000 + $100,000 - $75,000 = $875,000

Therefore, the correct choice is B.

During April,the CJG Manufacturing Company Had the Following Operating Results