Current information for the Healey Company follows:

All raw materials used were traceable to specific units of product. Healey 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

Current information for the Healey Company follows:

All raw materials used were traceable to specific units of product. Healey 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.

Quizplus · Accepted Answer

Total Manufacturing Costs = Raw Materials Used + Direct Labor + Factory Overhead
Raw materials used = Beginning Raw Materials Inventory + Raw Materials Purchases − Ending Raw Materials Inventory = $15,200 + $60,000 − $16,600 = $58,600
$58,600 + $42,800 + $30,000 = $131,400
Cost of goods manufactured = Beginning Work in Process + Total Manufacturing Costs − Ending Work in Process = $22,400 + $131,400 − $28,000 = $125,800 11eaadfd_cdcd_a9a2_95d8_017f355fc918_TB6948_00

Current Information for the Healey Company Follows