A corporation used $35,000 of direct materials and incurred $73,000 in direct labor cost, and $112,500 in manufacturing overhead costs during the period. What is the cost of goods manufactured if the beginning and ending Work-in-Process Inventories were $28,000 and $21,500, respectively?

A. $248,500

B. $227,000

C. $214,000

D. $220,500

Question

Business

Tia Andrade

11 July, 16:14

A corporation used $35,000 of direct materials and incurred $73,000 in direct labor cost, and $112,500 in manufacturing overhead costs during the period. What is the cost of goods manufactured if the beginning and ending Work-in-Process Inventories were $28,000 and $21,500, respectively?

A. $248,500

B. $227,000

C. $214,000

D. $220,500

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Answers (1)

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Skylar House · Answer 1

B. $ 227,000

Explanation:

The cost of goods manufactured is calculated by the following equation:

Opening Work in Process + Direct Material + Direct Labour + Manufacturing Overhead - Closing Work in Process

Direct Materials $ 35.000

Direct Labour $ 73,000

Manufacturing OH $ 112,500

Total Manufacturing Costs incurred $ 220.500

Add: Opening work in process $ 28,000

Less: Closing work in process $ (21,500)

Cost of Goods Manufactured $ 227,000