Question

Sales revenue$ 4,000Purchases of direct materials$ 400Direct labor$ 450Manufacturing overhead$ 620Operating expenses$ 650Beginning raw materials inventory$ 200Ending raw materials inventory$ 180Beginning work in process inventory$ 320Ending work in process inventory$ 410Beginning finished goods inventory$ 250Ending finished goods inventory$ 200What was cost of goods manufactured?A) $1,580B) $1,380C) $1,400D) $1,490

Answer 1

B) $1,380

Step-by-step explanation:

The computation of the cost of goods manufactured is shown below:

= Beginning work in process inventory + total manufacturing cost - Ending work in process inventory

where,

Total manufacturing cost = Purchase of Direct material + Direct labor + Manufacturing overhead

= $400 + $450 + $620

= $1,470

The other items value would remain the same

Now put these values to the above formula

So, the value would equal to

= $320 + $1,470 - $410

= $1,380