Question

Selected information regarding a company's most recent quarter follows (all data in thousands).

Beginning work in process inventory $330, cost of goods manufactured $690, direct materials used $170, direct labor $130, ending work in process inventory $160. What was manufacturing overhead for the quarter?
a. $860
b. $220
c. $160
d. $530

Answer 1

To calculate the manufacturing overhead, subtract the direct materials used and direct labor from the cost of goods manufactured.

Step-by-step explanation:

To calculate the manufacturing overhead for the quarter, we need to subtract the direct materials used and direct labor from the cost of goods manufactured. This will give us the manufacturing overhead.

Given:

• Beginning work in process inventory = $330
• Cost of goods manufactured = $690
• Direct materials used = $170
• Direct labor = $130
• Ending work in process inventory = $160

Manufacturing overhead = (Cost of goods manufactured - Direct materials used - Direct labor) = ($690 - $170 - $130) = $390 thousand.

Therefore, the manufacturing overhead for the quarter was $390 thousand.