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Using $3,000,000 as the total manufacturing costs, compute the cost of goods manufactured using the following information.
Raw materials inventory, January 1 $ 20,000
Raw materials inventory, December 31 40,000
Work in process, January 1 18,000
Work in process, December 31 12,000
Finished goods, January 1 40,000
Finished goods, December 31 32,000
Raw materials purchases 1,700,000
Direct labor 760,000
Factory utilities 150,000
Indirect labor 50,000
Factory depreciation 400,000
Operating expenses 420,000
a. $3,014,000
b. $3,006,000
c. $3,008,000
d. $2,994,000

Respuesta :

Answer:

$3,006,000

Explanation:

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

Cost of Goods Manufactured = Gross Manufacturing Cost + Opening Work in progress - Closing work in progress

= $3,000,000 + $18,000 - $12,000

= $3,006,000

Therefore for computing the cost of goods manufactured we have applied the above formulas and ignore all other values as they are not relevant.