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6 May, 15:28

A corporation used $35,000 of direct materials and incurred $73,000 in direct labor cost, and $112,500 in manufacturing overhead costs during the period. What is the cost of goods manufactured if the beginning and ending Work-in-Process Inventories were $28,000 and $21,500, respectively?

A. $248,500

B. $227,000

C. $214,000

D. $220,500

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  1. 6 May, 18:39
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    B. $ 227,000

    Explanation:

    The cost of goods manufactured is calculated by the following equation:

    Opening Work in Process + Direct Material + Direct Labour + Manufacturing Overhead - Closing Work in Process

    Direct Materials $ 35.000

    Direct Labour $ 73,000

    Manufacturing OH $ 112,500

    Total Manufacturing Costs incurred $ 220.500

    Add: Opening work in process $ 28,000

    Less: Closing work in process $ (21,500)

    Cost of Goods Manufactured $ 227,000
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