Question

The below is partially completed T-accounts summarize transactions for Mercury Corporation during the year:

Raw Materials
Beg Bal	5,250		9,500
	5,450

Work in Process
Beg Bal	4,350		22,450
	6,450
	8,750
	8,550

Finished Goods
Beg Bal	2,450		20,650
	22,450

Manufacturing Overhead
	3,050		8,550
	3,750
	3,450

Wages & Salaries Payable
	20,650	Beg Bal	2,750
			12,500

Cost of Goods Sold
Beg Bal	20,650

The Cost of Goods Manufactured was:

Multiple Choice

• $20,650

• $22,450

• $43,100

• $9,200

Answer 1

Answer = $22,450

Cost of goods manufactured includes beg WIP inventory plus direct materials used + direct labor used + manuf oh applied - end WIP inv.

And the amount is transferred to Finished Goods A/C.

So. from these T-accounts, The cost of goods manufactured = $22,450.

(The amount of salaries and wages payable is added in cost of goods sold rather than manufactured)