Question

The following information is available for Murray Manufacturing at year-end:

Beginning raw materials inventory	6,000
Ending raw materials inventory	$8,000
Materials purchased	13,000
Direct labour	4,000
Manufacturing overhead Applied	15,000
Beginning work in process inventory	8,000
Ending working in process inventory	5,000

What was the cost of goods manufactured during the period?

Select one:

a. $16,000

b. $35,000

c. $28,000

d. $33,000

Answer 1

Answer:

Computation of cost of goods manufactured during the period:

Particulars		Amount
Beginning raw materials inventory	6,000
Add: Materials purchased	13,000
Less: Ending raw materials inventory	(8,000)
Raw material consumed		11,000
Add: Direct labor		4,000
Add: Manufacturing overhead applied		15,000
Total manufacturing cost		30,000
Add: Beginning work in process inventory		8,000
Less: Ending work in process inventory		(5,000)
Cost of goods manufactured		33,000

Accordingly, Option (d) i.e. $33,000 is the correct answer.