Question

The accounting records of Falcon Company revealed the following information: Raw materials used $ 73,000 Direct labor 138,000 Manufacturing overhead 373,000 Work-in-process inventory, 1/1 63,000 Finished-goods inventory, 1/1 202,000 Work-in-process inventory, 12/31 89,000 Finished-goods inventory, 12/31 153,000 Falcon's cost of goods manufactured is:

Answer 1

the cost of goods manufactured is $558,000

Step-by-step explanation:

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

= Opening work in process + raw material used + direct labor + manufacturing overhead - ending work in process

= $63,000 + $73,000 + $138,000 + $373,000 - $89,000

= $558,000

Hence, the cost of goods manufactured is $558,000