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23 July, 18:10

Assuming that the total manufacturing costs are $3,400,000, compute the cost of goods manufactured using the information below.

Raw materials inventory, January 1 $ 30,000

Raw materials inventory, December 31 60,000

Work in process, January 1 27,000

Work in process, December 31 18,000

Finished goods, January 1 60,000

Finished goods, December 31 48,000

Raw materials purchases 1,800,000

Direct labor 890,000

Factory utilities 225,000

Indirect labor 75,000

Factory depreciation 500,000

Operating expenses 630,000

a. $3,421,000.

b. $3,391,000.

c. $3,409,000.

d. $3,142,000.

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  1. 23 July, 20:40
    0
    c. $ 3,409,000

    Explanation:

    Computation of cost of goods manufactured

    The cost of goods manufactured is calculated by adjusting the opening and closing work in process balances to the total manufacturing input

    Total manufacturing input $ 3,400,000

    Add: Opening work in process $ 27,000

    Less: Closing work in process $ (18,000)

    Cost of goods manufactured $ 3,409,000

    The cost of goods manufactured is determined by the total of the input and adding the differnce in opening and closing work in process balances.
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