Question

Could you solve clearly? Thanks a lot!!

At the beginning of April, Ying Yang Inc bought $365,000 of raw materials. During company incurred $125,000 in direct labor costs and $200,000 in overhead costs. Im following April balances related to its inventory accounts: Beginning Ending Raw Material $500,000 $100,000 Work in Process 350.000 757,000 Finished Goods 600,000 420,000 What is Ying Yang's cost of goods manufactured for April? a. $ 318,000 b. $ 333,000 c. $ 683,000 d. $1,132,000 e. $1,090,000

Answer 1

Total manufacturing cost

= Direct Materials used + Direct Labor + Manufacturing Overhead

= (500,000+365,000-100,000) + 125,000 + 200,000

= 1,090,0000

Cost of Goods manufactured

= Beginning work in process + Total manufacturing costs - Ending work in process

= 350,000+1,090,000-757,000

= 683,000