Principles of Managerial Accounting: Week 4

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Green Company’s costs for the month of August were as follows: direct materials, $27,000; direct labor, $34,000; selling, $14,000; administrative, $12,000; and manufacturing overhead, $44,000. The beginning work in process inventory was $16,000 and the ending work in process inventory was $9,000. What was the cost of goods manufactured for the month?

a. $105,000
b. $132,000
c. $138,000
Selected: d. $112,000 This answer is correct.

Correct! 27,000 + 34,000 + 44,000 = 105,000 total manufacturing costs + 16,000 beginning WIP inventory – 9,000 ending WIP inventory = 112,000.

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