Current information for the Stellar Corporation follows: $\begin{array}{lr}
\text { Beginning work in process inventory } & \$ 17,900 \
\text { Ending work in process inventory } & 19,300 \
\text { Direct materials used } & 147,000 \
\text { Direct labor used } & 85,000 \
\text { Total factory overhead } & 63,100
\end{array}$
Stellar Corporation's cost of goods manufactured for the year is:
A) $295,100.
B) $296,500.
C) $313,000.
D) $275,800.
E) $293,700.

Question

Current information for the Stellar Corporation follows: $\begin{array}{lr}
\text { Beginning work in process inventory } & \$ 17,900 \
\text { Ending work in process inventory } & 19,300 \
\text { Direct materials used } & 147,000 \
\text { Direct labor used } & 85,000 \
\text { Total factory overhead } & 63,100
\end{array}$
 Stellar Corporation's cost of goods manufactured for the year is:
A) $295,100.
B) $296,500.
C) $313,000.
D) $275,800.
E) $293,700.

Quizplus · Accepted Answer

The cost of goods manufactured is calculated as: Beginning WIP Inventory + Direct Materials Used + Direct Labor Used + Total Factory Overhead - Ending WIP Inventory = $17,900 + $147,000 + $85,000 + $63,100 - $19,300 = $293,700.

Current Information for the Stellar Corporation Follows Stellar Corporation's Cost of Goods Manufactured for the Year Is