Question

Quinton Corporation provided the following information for the year. Beginning Balance-Work-in-Process Inventory Ending Balance-Work-in-Process Inventory Beginning Balance-Direct Materials Ending Balance-Direct Materials Purchases-Direct Materials Direct Labor Indirect Labor Depreciation on Factory Plant and Equipment Plant Utilities and Insurance $27,000 56,000 80,000 60,000 361,000 469,000 20,000 23,000 268,000 What was the total manufacturing costs incurred during the year? O A. $1,161,000 OB. $850,000 OC. $692,000 OD. $311,000

Answer 1

Quinton Corporation
Schedule of Cost of goods manufactured
For the year ended…
Materials inventory at beginning	$           80,000
Add: purchase of material	$         361,000
Material available for use	$         441,000
Less: material inventory at ending	$           60,000
Direct material consumed		$                 381,000
Direct labor		$                 469,000
Manufacturing overhead
Indirect labor	$           20,000
Depreciation on factory plant and equipment	$           23,000
Plant utilities and insurance	$         268,000	$                 311,000
Total manufacture cost		$             1,161,000
Add: work in process inventory at beginning		$                   27,000
Total cost to be accounted for		$             1,188,000
Less: work in process inventory at ending		$                   56,000
Cost of goods manufactured		$             1,132,000
Option A is a correct option.		$             1,161,000