Question

Question 1 Use the following data to estimate Cost of goods manufactured: Not yet answered Sales 680,000 Marked out of 1.00 40,000 Flag question Raw materials inventory, 1/1 Raw materials inventory, 12/31 Raw materials purchases Direct labour 11,000 190,000 105,000 99,000 110,000 Manufacturing overhead Selling and administrative costs Cost of goods manufactured Cost of goods sold Work in process, 1/1 Work in process, 12/31 Finished goods, 1/1 Finished goods, 12/31 52,000 65,000 80,000 120,000 Select one: O a $410,000 O b. none of the options O c. $423,000 O d. $490,000 O e. $370,000

Answer 1

Solution: Option : a. $410,000 Statement showing cost of goods manufactured Particulars Amount Amount Direct materials: Beginning Raw materials inventory $ 40,000 Add: Raw materials purchases $ 190,000 $ 230,000 Less: Ending Raw materials inventory $ (11,000 Raw material transferred to production $ 219,000 Direct labor $ 105,000 Manufacturing overhead $ 99,000 Total Manufacturing cost $423,000 Add: Beginning work in process $ 52,000 $475,000 Less: Ending work in process $ (65,000) Cost of goods manufactured $ 410,000