Question

Hunkins Corporation has provided the following data concerning last month's operations. Purchases of raw materials $33,000 Indirect materials included in manufacturing $ 4,000 overhead Direct labor cost $58,000 Manufacturing overhead applied to Work in Process $91,000 Beginning Ending $ 14,000 $20,000 Raw materials inventory Work in process $ 57,000 $70,000 inventory How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?

Answer 1

	Correct option is: $159000
	Workings:
	Hunkins Corp.
	Schedule of Cost of goods Manufactured
	Work - in - process beginning			$             57,000
	Direct Material used
	Raw Material Inventory - Beginning	$             14,000
Add:	Raw Material purchased	$             33,000
	Raw Material available for use	$             47,000
Less:	Raw Material Inventory - Ending	$             20,000
	Direct Material used		$     27,000
	Direct Labor		$     58,000
	Manufacturing overhead ($91000 - $4000)		$     87,000
	Total manufacturing cost incurred during the year			$         1,72,000
	Total manufacturing cost account for			$         2,29,000
Less:	Work - in - process ending			$             70,000
	Cost of goods manufactured			$         1,59,000

If it is helpful, please rate the answer and if any doubt arises let me know