Question

12) Holmstrom Corporation has provided the following data concerning last month's operations. Direct materials Direct labor Manufacturing overhead applied to Work in Process $ 14,000 $ 58,000 $ 79,000 Beginning Ending Work in process inventory $ 47,000 $ 53,000 Finished goods inventory $ 41,000 $ 42,000 How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold? A) $186,000 B) $145,000 C) $144,000 D) $138,000

Answer 1

Direct material	14,000
Direct labor	58,000
Manugacturing overhead applied to work in process	79,000
Total manufacturing cost	151,000
beginning work in process	47,000
Ending work in process	-53,000
Cost of goods sold	145,000
Beginning finished goods inventory	41,000
Cost of goods sold available for sale	$186,000

Cost of goods sold available for sale = $186,000

Correct option is (A)