The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year.
-The cost of goods manufactured (finished) for the year (in thousands of dollars) was:
A) $530
B) $520
C) $500
D) $460

Question

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year. 
-The cost of goods manufactured (finished) for the year (in thousands of dollars) was:
A) $530 
B) $520 
C) $500 
D) $460

Quizplus · Accepted Answer

The cost of goods manufactured can be calculated as follows: 
Beginning inventory of work in process + Cost of direct materials used + Cost of direct labor + Manufacturing overhead cost incurred - Ending inventory of work in process = Cost of goods manufactured. 
Using the given data: 
Beginning inventory of work in process = $20 
Cost of direct materials used = $140 
Cost of direct labor = $120 
Manufacturing overhead cost incurred = $100 
Ending inventory of work in process = $60 
Therefore, Cost of goods manufactured = $520 thousand. Option B is the correct answer.

The Following Data (In Thousands of Dollars) Have Been Taken