Question

Zoolander Inc. manufacturers high end fashion accessories and has provided the following data for the latest quarter ended March​ 31st:

Beginning Inventory for Raw Materials	$60,000
Ending Inventory for Raw Materials	$45,600
Beginning Inventory for Work in Process	$90,000
Ending Inventory for Work in Process	$101,000
Beginning Inventory for Finished Goods	$49,000
Ending Inventory for Finished Goods	$51,000
Purchases of Raw Materials	$42,000
Wages paid to assembly line workers	$116,000
Wages paid to factory supervisor	$32,000
Property insurance paid on factory	$5,300
Utilities for the factory	$9,400
Indirect materials used in production	$3,900
Sales Revenue	​$525,000
General​ & Administrative Expenses	​$135,000

Calculate cost of goods manufactured for Zoolander​ Inc.'s first quarter.​ (Assume that indirect materials are not included in Raw Materials​ Inventory.)

A

$197,600

B.

$208,100

C.

$215,600

D.

$212,000

Answer 1

D. $212,000

Direct materials used = Beginning Inventory for Raw Materials + Purchases - Ending Inventory for Raw Materials = $60,000 + $42,000 - $45,600 = $56,400

Cost of goods manufactured = Beginning Inventory for Work in Process + Direct materials used + Direct labor + Wages paid to factory supervisor + Property insurance paid on factory + Utilities for the factory + Indirect materials used in production - Ending Inventory for Work in Process

Cost of goods manufactured = $90,000 + $56,400 + $116,000 + $32,000 + $5,300 + $9,400 + $3,900 - $101,000

Cost of goods manufactured = $212,000