Question

The following accounts are from last year's books at Sharp Manufacturing: Bal (a) 517,200 Raw Materials (b) 168,500 12,700 155,800 Bal (b) (c) (e) Work In Process @ (f) 132,900 169,800 214,500 Finished Goods Bal (f) (9) 214,500 Manufacturing Overhead 22,900(e) 26,900 157,800 469,000 (b) (c) (d) 517,200 48,200 6,900 (9) Cost of Goods Sold 469,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year?

Answer 1

Answer

Correct Answer = Option Two

Cost of Goods manufactured = $ 5,17,200

Computation of Cost of Goods Manufactured

Cost of Goods manufactured = Cost of goods Sold Beginning Balance + Finished Goods ending Balance

Cost of Goods manufactured = $ 469,000 + $ 48,200 = $ 5,17,200

Or

Computation of Cost of Goods Manufactured

Beginning WIP	$ 0
Add :(b) Direct Material	$ 132,900
Add :(c) Direct Labor	$ 169,800
Add :(e) Manufacturing Overhead	$ 214,500
Less : Ending WIP	$ 0
Cost of Goods manufactured	$ 5,17,200