Using the information below for Hardy Company; determine the manufacturing costs added during the current year:
A) $12,000.
B) $16,100.
C) $17,100.
D) $18,100.
E) $13,600

Question

Using the information below for Hardy Company; determine the manufacturing costs added during the current year: 
A) $12,000. 
B) $16,100. 
C) $17,100. 
D) $18,100. 
E) $13,600

Quizplus · Accepted Answer

Manufacturing cost is the sum of direct materials, direct labor, and manufacturing overhead. From the given information, we know that cost of goods manufactured is $218,000, and the beginning and ending balances of work in process are $43,000 and $28,000 respectively.
Using the formula:
Beginning WIP + Total Manufacturing Costs - Ending WIP = Cost of Goods Manufactured
$43,000 + Total Manufacturing Costs - $28,000 = $218,000
Total Manufacturing Costs = $218,000 - $43,000 + $28,000
Total Manufacturing Costs = $203,000
Therefore, the manufacturing costs added during the current year are $203,000 - $186,900 = $17,100. Thus, the correct choice is C.

Using the Information Below for Hardy Company; Determine the Manufacturing