Question

During its first year of operations, the Brown Company incurred the following product costs: Direct materials used in production $200,000 Direct labor $175,000 Manufacturing overhead $145,500 The Brown Company's ending Work in Process Inventory amounted to $35,000 at the end of the year. What is the company's cost of finished goods manufactured for the year?

Answer 1

Answer:

$485,500

Explanation:

The computation of the cost of finished goods manufactured for the year is shown below:

= Direct materials used in production + Direct labor cost + Manufacturing overhead cost + beginning work-in-process inventory - ending work-in-process inventory

= $200,000 + $175,000 + $145,500 + $0 - $35,000

= $485,500