Question

The following beginning and ending inventory balances apply to Holder Company: Beginning Ending Raw Materials Inventory $ 24,000 $ 22,000 Work in Process Inventory 32,000 33,000 Finished Goods Inventory 20,000 17,000 During the accounting period, the company purchased $234,000 of direct raw materials. It incurred $180,000 of direct labor costs for the year and allocated $260,000 of manufacturing overhead costs to work in process. There was no overapplied or underapplied overhead. Revenue from goods sold during the year was $800,000.The amount of cost of goods manufactured (amount transferred from WIP to finished goods) was

Answer 1

Cost of goods manufactured= 675,000

Step-by-step explanation:

To calculate the cost of goods manufactured, we need to use the following formula:

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

cost of goods manufactured= 32,000 + (24,000 + 234,000 - 22,000) + 180,000 + 260,000 - 33,000

cost of goods manufactured= 675,000