Question

Use the cost information below for Sundar Company to determine the cost of goods manufactured during the current year:
Direct materials used $ 19,000
Direct labor used 24,500
Factory overhead 55,100
Beginning work in process inventory 10,700
Ending work in process inventory 11,300

Answer 1

Answer:

The cost of goods manufactured during the current year was $98,000

Explanation:

The manufacturing costs incurred during the current year = Direct materials cost + Direct labor cost + Factory overhead = $19,000 + $24,500 + $55,100 = $98,600

The cost of goods manufactured during the current year = Beginning work in process inventory + The manufacturing costs incurred during the current year - Ending work in process inventory = $10,700 + $98,600 - $11,300 = $98,000