Question

Using the information below for Laurels Company; determine the cost of goods manufactured during the current year:

Direct materials used $5,000
Direct Labor 7,000
Total Factory overhead 5,100
Beginning work in process 3,000
Ending work in process 4,000

A. $18,100.
B. $13,600.
C. $16,100.
D. $12,000.
E. $17,100.

Answer 1

The correct answer is C.

Step-by-step explanation:

Giving the following information:

Direct materials used $5,000

Direct Labor 7,000

Total Factory overhead 5,100

Beginning work in process 3,000

Ending work in process 4,000

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 3,000 + 5,000 + 7,000 + 5,100 - 4,000= $16,100