Question

Hendrix & Franks Company had the following beginning and ending inventory balances for the current year ended December 31:

​	January 1	December 31
Materials	$11,000	$ 8,800
Work in Process	19,800	18,700
Finished Goods	23,100	18,150

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In addition, direct labor costs of $33,000 were incurred, manufacturing overhead equaled $46,200, materials purchased were $29,700, and selling and administrative costs were $24,200. Hendrix & Franks Co. sold 27,500 units of product during the year at a sales price of $5.25 per unit. What was the amount of cost of goods manufactured for the year?

	a.	​$100,000
	b.	​$124,000
	c.	​$101,000
	d.	​$112,200

Answer 1

Schedule of Cost of goods manufactured

Direct materials:
Beginning raw material inventory	11,000
Add: Purchases of raw material	29,700
Total raw materials available	40,700
Less: Ending raw materials inventory	- 8,800
Raw materials used in production	31,900
Direct labor	33,000
Manufacturing overhead	46,200
Total manufacturing cost	111,100
Add: Beginning work in process inventory	19,800
Less: Ending work in process inventory	- 18,700
Cost of goods manufactured	112,200

amount of cost of goods manufactured for the year = $112,200

Correct option is (d)

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