Question

Teletubbies Inc.'s accounting records reflect the following information: Direct materials used $ 12,500 Raw materials, January 1 5,000 Raw materials, December 31 8,000 Work in process, January 1 50,000 Work in process, December 31 37,000 Manufacturing Overhead 5,500 Direct Labor 26,500 Total cost of goods manufactured for the year was:

Answer 1

cost of goods manufactured= $57,500

Step-by-step explanation:

Giving the following information:

Direct materials used $ 12,500

Work in process, January 1 50,000

Work in process, December 31 37,000

Manufacturing Overhead 5,500

Direct Labor 26,500

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

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

cost of goods manufactured= 50,000 + 12,500 + 26,500 + 5,500 - 37,000

cost of goods manufactured= $57,500