Question

Given the following data for Harder Company, compute cost of goods manufactured:

Direct materials used $120,000
Beginning work in process $20,000
Direct labor $200,000
Ending work in process $10,000
Manufacturing overhead $180,000
Beginning finished goods $25,000
Operating expenses $175,000
Ending finished goods $15,000

(A) $460,000
(B) $470,000
(C) $480,000
(D) $490,000

Answer 1

Answer: Cost of goods manufactured = $520000

Step-by-step explanation:

Given that,

Direct materials used = $120,000

Beginning work in process = $20,000

Direct labor = $200,000

Ending work in process = $10,000

Manufacturing overhead = $180,000

Beginning finished goods = $25,000

Operating expenses = $175,000

Ending finished goods = $15,000

∴ Cost of goods manufactured = Direct materials used + Beginning work in process + Direct labor - Ending work in process + Manufacturing overhead + Beginning finished goods - Ending finished goods

= $120,000 + $20,000 + $200,000 - $10,000 + $180,000 + $25,000 - $15,000

= $520000