Question

The accounting staff at Valencia Manufacturing, Incorporated has provided the following data for the month of July. The balance in the Work in Process inventory account was $31,000 at the beginning of the month and $21,500 at the end of the month. During the month, the Corporation incurred direct materials cost of $56,800 and direct labor cost of $30,700. The actual manufacturing overhead cost incurred was $53,900. The manufacturing overhead cost applied to Work in Process was $52,800. The cost of goods manufactured for July was:

Answer 1

the cost of goods manufactured is $149,800

Step-by-step explanation:

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

= Opening work in process + total manufacturing cost - ending work in process

= $31,000 + ($56,800 + $30,700 + $52,800) - $21,500

= $31,000 + $140,300 - $21,500

= $149,800

hence, the cost of goods manufactured is $149,800