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Direct materials used for the period cost $66,000; Direct labor cost $80,000; Applied overhead was $60,000; Beginning work in process inventory was $27,000; and Ending work in process inventory was $25,000. Calculate the cost of goods manufactured.

Respuesta :

Answer:

$208,000

Explanation:

The computation of the cost of goods manufactured is shown below:

Cost of goods manufactured = Opening work in process + Manufacturing cost - ending work in process

where manufacturing cost equal to

= Direct material used + Direct labor cost + Manufacturing Overhead cost

= $66,000 + $80,000 + $60,000

= $206,000

Now the cost of goods manufactured is

= $27,000 + $206,000 - $25,000

= $208,000

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