Asked by Benjamin Cohen on Jun 25, 2024
Verified
Using the information below for Talking Toys, Inc., determine cost of goods manufactured for the year:
A) $13,000.
B) $44,500.
C) $57,500.
D) $94,500.
E) $52,000.
Cost Of Goods Manufactured
The total expense incurred to produce goods within a specified period, including materials, labor, and overhead.
- Achieve insight into the calculation and relevance of the cost of goods manufactured.
Verified Answer
MC
Maryame ChayatJul 01, 2024
Final Answer :
C
Explanation :
The cost of goods manufactured is calculated by adding direct materials used, direct labor, and manufacturing overhead incurred during the year, and subtracting the beginning work in process inventory and adding the ending work in process inventory.
Direct materials used = $21,000
Direct labor = $33,000
Manufacturing overhead = $19,000
Beginning work in process inventory = $8,000
Ending work in process inventory = $8,000
Therefore, cost of goods manufactured = ($21,000 + $33,000 + $19,000) - $8,000 + $8,000 = $57,500.
Direct materials used = $21,000
Direct labor = $33,000
Manufacturing overhead = $19,000
Beginning work in process inventory = $8,000
Ending work in process inventory = $8,000
Therefore, cost of goods manufactured = ($21,000 + $33,000 + $19,000) - $8,000 + $8,000 = $57,500.
Learning Objectives
- Achieve insight into the calculation and relevance of the cost of goods manufactured.
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