Question

The information below relates to Derby Manufacturing Company's operations for a recent month. (Assume that all raw materials are direct materials.): Purchases of raw materials........................ $91,000 Direct labor cost........................................ $122,000 Selling costs (total).................................... $42,000 Administrative costs (total)....................... $56,000 Manufacturing overhead costs (total)....... $340,000 Raw materials inventory, beginning.......... $22,000 Work in process inventory, beginning....... $27,000 Finished goods inventory, beginning........ $42,000 Raw materials inventory, ending............... $7,000 Work in process inventory, ending............ $35,000 Finished goods inventory, ending............. $15,000 What was Derby's cost of goods manufactured for the month? a. $545,000 b. $560,000 c. $568,000 d. $587,000

Answer 1

	Cost of goods manufactured
	raw materials used
	raw materials inventory,beginning				22,000
	add raw materials purchased				91,000
	raw materials available				113,000
	raw materials inventory,ending				7,000
	raw materials used					106,000
	direct labor cost					122,000
	manufacturing overhead cost					340,000
	total manufacturing cost					568,000
	Add:work in process inventory,beginning					27,000
						595,000
	less:work in processe inventory,ending					35,000
	cost of goods manufactured					560,000	answer
	option b)	$560,000