Use the following information to compute the cost of goods manufactured. Assume that all raw materials used were traceable to specific units of product.

Beginning raw materials $ 6,500

Ending raw materials 5,000

Direct labor 13,250

Raw material purchases 8,400

Depreciation on factory equipment 7,500

Factory repairs and maintenance 4,300

Beginning finished goods inventory 11,200

Ending finished goods inventory 9,900

Beginning work in process inventory 6,700

Ending work in process inventory 7,300

Multiple Choice:

A. $35,650.

B. $34,950.

C. $35,550.

D. $34,350.

E. $41,650.

D. $ 34,350

Explanation:

The first step in determining the cost of goods manufactured is to determine the inputs

Raw materials consumed

Beginning raw materials $ 6.500

Add: raw materials purchases $ 8,400

Raw materials available for use $ 14,900

Less: Ending raw materials $ (5,000)

Raw materials consumed $ 9,900

Direct labour $ 13,250

Factory overhead

Depreciation on factory equipment $ 7.500

Factory repairs and maintenance $ 4,300

Total Factory Overhead $ 11,800

Total manufacturing costs input $ 34,950

Add: Opening work in process $ 6,700

Less Closing work in process $ (7,300)

Total Cost of goods manufactured $ 34,350