The following information was taken from the accounting records of Jackson Manuf
ID: 2477920 • Letter: T
Question
The following information was taken from the accounting records of Jackson Manufacturing Company:
Direct materials purchased= $95,000
Direct materials used= 76,000
Direct manufacturing labor costs= 10,000
Indirect manufacturing labor costs= 22,000
Sales salaries= 35,000
Miscellaneous factory expenses= 5,000
Administrative expenses= 40,000
Finished goods inventory, beginning= 10,000
Finished goods inventory, end= 12,000
Work in process inventory, beginning= 0
Work in process inventory, end= 0
(QUESTION): What is Cost of Goods Manufactured? A) $111,000 B) $113,000 C) $130,000 D) $132,000
Explanation / Answer
The Formula for calculating the Cost of Goods Manufactured is :
Begining WIP + Total Manufacturing Cost - Ending WIP.
Total Manufactuing Cost = Direct Material + Direct Labor + Manufacturing Overheads
So in the Present Case the Cost of Goods Manufactured is = $76,000+10,000+22,000+5,000 = $111,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.