Question

Industries is calculating its Cost of Goods Manufactured at​ year-end. The​ company's accounting records show the​ following: The Raw Materials Inventory account had a beginning balance of $ 14 comma 000 and an ending balance of $ 16 comma 000 . During the​ year, the company purchased $ 68 comma 000 of direct materials. Direct labor for the year totaled $ 119 comma 000 ​, while manufacturing overhead amounted to $ 155 comma 000 . The Work in Process Inventory account had a beginning balance of $ 21 comma 000 and an ending balance of $ 19 comma 000 . Assume that Raw Materials Inventory contains only direct materials. Compute the Cost of Goods Manufactured for the year. ​(Hint​: The first step is to calculate the direct materials used during the​ year.) "Goodrow"

Answer 1

Answer: $342,000

Step-by-step explanation:

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

Direct materials used = Beginning raw materials inventory + purchases of raw materials - ending raw material inventory

= 14,000 + 68,000 - 16,000

= $66,000

Cost of Goods manufactured:

= 21,000 + 66,000 + 119,000 + 155,000 - 19,000

= $342,000