Rediger Incorporated a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $36,000 at the beginning of the month and $24,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $57,800 and direct labor cost of $32,200. The actual manufacturing overhead cost incurred was $54,400. The manufacturing overhead cost applied to Work in Process was $53,800. The cost of goods manufactured for June was:

A) $156,400.
B) $155,800.
C) $143,800.
D) $144,400.

Question

jacob Caricofe · Accepted Answer

Final Answer : B, Explanation :  The formula for Cost of Goods Manufactured is:Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process InventoryPlugging in the given values, we get:$36,000 (beginning WIP) + $57,800 (direct materials) + $32,200 (direct labor) + $53,800 (applied overhead) - $24,000 (ending WIP) = $155,800Therefore, the cost of goods manufactured for June was $155,800.

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