Asked by Jonathan Philley on Jul 01, 2024
Verified
Use the following data to determine the cost of goods manufactured:
A) $102,000.
B) $110,100.
C) $96,600.
D) $113,700.
E) $100,200.
Cost of Goods Manufactured
The total expense incurred by a company to produce goods in a given period, including materials, labor, and overhead costs.
Determine
To establish something exactly, typically through analysis or calculation.
Data
Information processed or stored by a computer or other digital device, often presented in numerical form.
- Comprehend the connection between the cost of goods manufactured, the total costs incurred in manufacturing, and the cost of goods sold.
Verified Answer
JS
Jackson Saladin7 days ago
Final Answer :
C
Explanation :
The cost of goods manufactured is calculated by adding the total manufacturing costs (direct materials used, direct labor, and factory overhead) to the beginning work in process inventory and subtracting the ending work in process inventory.
Beginning work in process: $25,800
Direct materials used: $32,100
Direct labor: $21,600
Factory overhead: $17,100
Total manufacturing costs: $70,800
Ending work in process: $11,400
Cost of goods manufactured:
= Beginning work in process + Total manufacturing costs - Ending work in process
= $25,800 + $70,800 - $11,400
= $96,600
Beginning work in process: $25,800
Direct materials used: $32,100
Direct labor: $21,600
Factory overhead: $17,100
Total manufacturing costs: $70,800
Ending work in process: $11,400
Cost of goods manufactured:
= Beginning work in process + Total manufacturing costs - Ending work in process
= $25,800 + $70,800 - $11,400
= $96,600
Learning Objectives
- Comprehend the connection between the cost of goods manufactured, the total costs incurred in manufacturing, and the cost of goods sold.