Question

The following is the data for Lauren Enterprises:

Selling and administrative expenses $75,000
Direct materials used 265,000
Direct labor (25,000 hours) 300,000
Factory overhead application rate $16 per DLH
Inventories
Beginning Ending
Direct materials $50,000 $45,000
Work in process 75,000 90,000
Finished goods 40,000 25,000
What is the cost of goods manufactured?
a. $1,115,000
b. $965,000
c. $955,000
d. $950,000

Answer 1

b. $965,000

Step-by-step explanation:

Calculation of Cost of Goods Manufactured

Particulars Amount

Direct material used $265,000

Direct labor $300,000

Factory overhead $400,000

Total manufacturing cost $965,000