Question

Ernst Manufacturing found the following information in its accounting records: $508,000 of direct materials used, $228,500 of direct labor, and $756,000 of manufacturing overhead. The Work in Process Inventory account had a beginning balance of $74,500 and an ending balance of $81,350. Compute the company's Cost of Goods Manufactured The Cost of Goods Manufactured is

Answer 1

Correct Answer:

Ernst Manufacturing
Beginning Work in process inventory		$              74,500
Add:
Direct materials used	$        508,000
Direct Labor	$        228,500
Manufacturing Overhead	$        756,000
Total		$        1,492,500
Less:
Ending Work in process inventory		$              81,350
Cost of goods manufactured		$        1,485,650

End of Answer.

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