Current information for the Austin Company follows: All raw materials used were traceable to specific batches of product. Austin Company's cost of goods manufactured for the year is:
A) $125,800.
B) $128,600.
C) $131,400.
D) $137,000.
E) $139,000.

Question

Quizplus · Accepted Answer

The correct answer is A because the cost of goods manufactured is the sum of direct materials, direct labor, and manufacturing overhead. In this case, the direct materials are $50,000, the direct labor is $30,000, and the manufacturing overhead is $45,800. Therefore, the cost of goods manufactured is $125,800.

Current Information for the Austin Company Follows: All Raw Materials