Asked by Lydia Mazuka on Jun 09, 2024
Verified
The following data apply to Brewers Ltd 
Calculate the cost of goods manufactured during the year.
A) $122 000
B) $135 000
C) $145 000
D) $150 000
Cost of Goods Manufactured
The total production cost of goods that were completed during a specific accounting period, including materials, labor, and overhead.
- Familiarize oneself with the pathway costs take in manufacturing accounts and the method of calculating the cost of goods manufactured and ultimately sold.
Verified Answer
AN
Angela NavalesJun 13, 2024
Final Answer :
C
Explanation :
The cost of goods manufactured formula is:
Beginning Work in Process + Total Manufacturing Costs - Ending Work in Process
$15,000 (Beginning WIP)
+ $180,000 (Direct materials used + Direct labor + Manufacturing overhead)
- $50,000 (Ending WIP)
= $145,000 (Cost of goods manufactured)
Beginning Work in Process + Total Manufacturing Costs - Ending Work in Process
$15,000 (Beginning WIP)
+ $180,000 (Direct materials used + Direct labor + Manufacturing overhead)
- $50,000 (Ending WIP)
= $145,000 (Cost of goods manufactured)
Learning Objectives
- Familiarize oneself with the pathway costs take in manufacturing accounts and the method of calculating the cost of goods manufactured and ultimately sold.