If the cost of the beginning work in process inventory is $60,000, direct materials cost is $350,000, direct labor cost is $216,000, and overhead cost is $319,000, and the ending work in process inventory is $55,000, calculate the cost of goods manufactured.

Question

Business

Emery Crosby

24 November, 06:20

If the cost of the beginning work in process inventory is $60,000, direct materials cost is $350,000, direct labor cost is $216,000, and overhead cost is $319,000, and the ending work in process inventory is $55,000, calculate the cost of goods manufactured.

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Answers (1)

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Davion Doyle · Answer 1

cost of goods manufactured = $890,000

Explanation:

Giving the following information:

beginning work in process inventory is $60,000

direct materials cost is $350,000

direct labor cost is $216,000

overhead cost is $319,000

the ending work in process inventory is $55,000

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured = beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured = 60,000 + 350,000 + 216,000 + 319,000 - 55,000

cost of goods manufactured = $890,000