ABC Company has the following information at the end of the current year: Direct Materials Used $25,000 Beginning Work-in-Process Inventory 2,000 Ending Work-in-Process Inventory 5,000 Direct Labor 10,000 Manufacturing Overhead 7,000 What is the cost of goods manufactured?

Question

Mikaela Dudley

Business

27 February, 14:43

ABC Company has the following information at the end of the current year: Direct Materials Used $25,000 Beginning Work-in-Process Inventory 2,000 Ending Work-in-Process Inventory 5,000 Direct Labor 10,000 Manufacturing Overhead 7,000 What is the cost of goods manufactured?

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Answers (1)

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Ahmed · Answer 1

The correct answer to the following question is $39,000.

Explanation:

The given information -

Direct material - $25,000

Beginning work in progress - $2000

Ending work in progress - $5000

Direct labor - $10,000

Manufacturing overhead - $7000

So to calculate the cost of goods manufactured =

Direct material + Beginning work in progress + Direct labor + Manufacturing Overhead - Ending work in progress

= $25,000 + $2000 + $10,000 + $7000 - $5000

= $39,000