Question

Current information for the Stellar Corporation follows:

Beginning work in process inventory $ 34,900
Ending work in process inventory 36,300
Direct materials 164,000
Direct labor 102,000
Total factory overhead 80,100

Stellar Corporation's Cost of Goods Manufactured for the year is:
(A) $346,100
(B) $347,500
(C) $381,000
(D) $309,800

Answer 1

To find the Cost of Goods Manufactured, we add Direct Materials, Direct Labor, Total Factory Overhead, and the beginning work in process inventory, then subtract the ending work in process inventory. The calculation yields $344,700, which does not match any of the provided answers. It is possible there is a typo in the options or an error in the question's calculations.

Step-by-step explanation:

To calculate Stellar Corporation's Cost of Goods Manufactured (COGM), we will add up all manufacturing costs and then adjust for the change in work in process inventory:

Begin with the total of Direct Materials, Direct Labor, and Total Factory Overhead.

Add the beginning work in process inventory.

Subtract the ending work in process inventory to find the COGM.

Thus, the calculation is:

Direct Materials ($164,000) + Direct Labor ($102,000) + Total Factory Overhead ($80,100) + Beginning work in process inventory ($34,900) - Ending work in process inventory ($36,300) = COGM

$164,000 + $102,000 + $80,100 + $34,900 - $36,300 = $344,700

Therefore, none of the options provided (A) $346,100, (B) $347,500, (C) $381,000, (D) $309,800 precisely match the calculated COGM of $344,700. There might be a typo in the options or a mistake in the calculations within the question. It is important to double-check the calculations and the given answer choices.

Answer 2

Cost of good manufactured= $344700

Step-by-step explanation:

To calculate the cost of manufactured goods we need to use the following formula:

Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress

Beginning work in progress= $34,900

Direct materials = beginning inventory + purchase - ending inventory= 164,000

Direct labor= 102,000

Manufactured overhead=80,100

Ending work in progress= 36,300

Cost of good manufactured= 34,900+164,000+102,000+80,100-36,300=$344700