Hudek Inc., a manufacturing Corporation, has provided the following data for the

Question

Hudek Inc., a manufacturing Corporation, has provided the following data for the month of July. The balance in the Work in Process inventory account was $20,000 at the beginning of the month and $10,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $50,000 and direct labor cost of $22,000. The actual manufacturing overhead cost incurred was $58,000. The manufacturing overhead cost applied to Work in Process was $56,000. The cost of goods manufactured for July was: Multiple Choice $138,000 $140,000 $130,000 $128,000

Explanation / Answer

Schedule of Cost of Goods Manufactured Direct materials 50000 Direct labor 22000 Manufacturing overhead applied to work in process inventory 56000 Total manufacturing costs 128000 Add: Beginning work in process inventory 20000 148000 Deduct: Ending work in process inventory 10000 Cost of goods manufactured 138000 Option 1 is correct

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