Asked by Chasity Fields on Jun 20, 2024
Verified
The cost of goods manufactured for March was:
A) $81,800.
B) $75,550.
C) $67,300.
D) $67,250.
Cost of Goods Manufactured
The total cost incurred by a company to produce goods during a specific period, including materials, labor, and overhead.
- Determine the production cost using specified job-order costing figures.
Verified Answer
TM
Thulasi MahendrarajahJun 21, 2024
Final Answer :
C
Explanation :
The cost of goods manufactured is calculated as follows:
Beginning Work-in-Process Inventory + Total Manufacturing Costs during Period - Ending Work-in-Process Inventory = Cost of Goods Manufactured
Using the information given in the problem, we have:
Beginning Work-in-Process Inventory = $0
Direct Materials Used = $50,000
Direct Labor = $12,800
Manufacturing Overhead = $22,500
Total Manufacturing Costs = $85,300
Ending Work-in-Process Inventory = $18,000
Thus:
$0 + $85,300 - $18,000 = $67,300
Therefore, choice C is correct.
Beginning Work-in-Process Inventory + Total Manufacturing Costs during Period - Ending Work-in-Process Inventory = Cost of Goods Manufactured
Using the information given in the problem, we have:
Beginning Work-in-Process Inventory = $0
Direct Materials Used = $50,000
Direct Labor = $12,800
Manufacturing Overhead = $22,500
Total Manufacturing Costs = $85,300
Ending Work-in-Process Inventory = $18,000
Thus:
$0 + $85,300 - $18,000 = $67,300
Therefore, choice C is correct.
Learning Objectives
- Determine the production cost using specified job-order costing figures.
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