Arturo Manufacturing, Inc. provided the following information for the year: Begi

Question

Arturo Manufacturing, Inc. provided the following information for the year: Beginning Balance Work-in-Process Inventory$151,000 Ending Balance Work-in-Process Inventory Beginning Balance-Direct Materials Ending Balance-Direct Materials Purchases Direct Materials Direct Labor Indirect Materials Indirect Labor Depreciation on Factory Plant and Equipment Plant Utilities and Insurance 63,000 268,000 52,200 133,000 70,120 53,850 131,000 73,000 73,800 O A. $765,570 B. $838,570 O C. $750,570 OD. $901,570

Explanation / Answer

Current Manufacturing cost: Beginning Raw material 268000 Add: Purchase 133000 Less: Ending invventory of Raw material -52200 Material consumed 348800 Direct labour 70120 Factory OH incurred 331650 (53850+131000+73000+73800) 750570.00 Cost of Goods manufactured: Current cost of Manufacturing 750570 Add: Beginning WIP 151000 Less: Ending WIP 63000 Cost of Goods manufactured: 838570 Now, If Current cost of manufacturing is asked. Answer is C. $ 750,570 If Cost of goods manufactured is asked, Answer is B. $ 838570

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