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16 September, 23:25

ABC Company has the following information at the end of the current year: Direct Materials Used $25,000 Beginning Work-in-Process Inventory 2,000 Ending Work-in-Process Inventory 5,000 Direct Labor 10,000 Manufacturing Overhead 7,000 What is the cost of goods manufactured?

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  1. 17 September, 01:44
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    The correct answer to the following question is $39,000.

    Explanation:

    The given information -

    Direct material - $25,000

    Beginning work in progress - $2000

    Ending work in progress - $5000

    Direct labor - $10,000

    Manufacturing overhead - $7000

    So to calculate the cost of goods manufactured =

    Direct material + Beginning work in progress + Direct labor + Manufacturing Overhead - Ending work in progress

    = $25,000 + $2000 + $10,000 + $7000 - $5000

    = $39,000
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