Consider Derek's budget information: materials to be used totals $62,100; direct labor totals $198,200; factory overhead totals $403,100; work in process inventory January 1 is $187,500; and work in progress inventory on December 31 is $195,000. The budgeted cost of goods manufactured for the year is

Cost of goods manufactured 655,900

Explanation:

First, we add the three cost component:

materials used in production 62,100

direct labor 198,200

overhead 403,100

total cost added during the period 663,400

Then, using the WIP beginning and ending figures, we solve for cost of goods manufactured

WIP january 1st 187,500

cost added 663,400

WP endind (195,000)

Cost of goods manufactured 655,900