Using the following data for December, calculate the cost of goods manufactured:

Question

Using the following data for December, calculate the cost of goods manufactured:

            Direct Materials………………………….. $27,000

            Direct Labor……………………………… $19,000

            Manufacturing Overhead………………… $25,000

            Beginning work in process inventory……. $14,000

            Ending work in process inventory……….. $12,000

            The cost of goods manufactured was:

            A. $73,000

            B. $87,000

            C. $83,000

            D. $99,000

            E. $75,000

Explanation / Answer

Total manufacturing costs=Direct materials+Direct labor+Manufacturing overheads

=(27000+19000+25000)=$71000

Cost of goods manufactured=Total manufacturing cost+Beginning WIP-Ending WIP

=(71000+14000-12000)=$73000(A)

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