Question

QUESTION 1 Given the following data: Cost of materials used Direct labor costs Factory overhead Work in process, beginning Work in process, ending Finished goods, beginning Finished goods, ending What is cost of goods sold? a. $152,000 b. $10,000 c. $142,000 d. $128,000 $45,000 48,000 39,000 28,000 18,000 28,000 18,000

Answer 1

Option A is correct. $152,000 Calculation : Schedule of cost of Goods sold Cost of materials used $45,000 Add: Direct Labor costs $ 40,000 Add: factory overhead $39,000 - Total manufacturing costs $132,000 Add: Beginning work in Process Inventory $ 28,000 Deduct: Ending work in Process Inventory $ 18,000 cost of Goods manufactured $ 142,000 Aad: Beginning finished goods inventory $ 28,000 Deduct: Ending finished goods inventory as inventory $ 18,000 Cost of Goods sold $152,000