Question

The Clarke Company provided the following information for the month of December:Beginning work-in-process $12,000Ending work-in-process $9,000Direct labor/materials used $14,000Manufacturing overhead $7,000The company's cost of goods manufactured for December is:A)$42,000 B)$33,000 C)$28,000 D)$24,000 E)$26,000

Answer 1

Answer: Option (D) is correct.

Step-by-step explanation:

Given that,

Beginning work-in-process = $12,000

Ending work-in-process = $9,000

Direct labor/materials used = $14,000

Manufacturing overhead = $7,000

Cost of goods manufactured:

= Beginning work in progress + Total manufacturing costs - Ending work in progress

= $12,000 + ($14,000 + $7,000) - $9,000

= $24,000