Frankin Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials............................................ |
$26,000 |
|
Indirect materials included in manufacturing overhead |
$6,000 |
|
Direct labor cost............................................................ |
$58,000 |
|
Manufacturing overhead applied to Work in Process... |
$97,000 |
Beginning |
Ending |
||
Raw materials inventory......... |
$11,000 |
$17,000 |
|
Work in process inventory..... |
$52,000 |
$66,000 |
How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?
A) $175,000
B) $221,000
C) $155,000
D) $169,000
Correct answer is ( C)
Solution
Cost of Goods Manufactured Schedule |
|
Beginning raw materials inventory |
$ 11,000.00 |
Add: Cost of raw materials purchased |
$ 26,000.00 |
Less: Ending raw material inventory balance |
$ 17,000.00 |
raw materials used |
$ 20,000.00 |
Add: Direct labor cost |
$ 58,000.00 |
Add: Manufacturing overhead |
$ 91,000.00 |
Total Manufacturing Cost |
$ 169,000.00 |
Add: Opening Work in progress inventory |
$ 52,000.00 |
Less: Closing Work in progress inventory |
$ 66,000.00 |
= Cost of goods manufactured |
$ 155,000.00 |
Get Answers For Free
Most questions answered within 1 hours.