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Item 15 Item 15 If the cost of the beginning work in process inventory is $60,000, direct materials cost is $350,000, direct labor cost is $216,000, and overhead cost is $319,000, and the ending work in process inventory is $55,000, calculate the cost of goods manufactured:

Answer :

Answer:

$890,000

Explanation:

Cost of goods manufactured = Opening work in process + Direct Expenses incurred for the period - Closing Work in Process

Here opening work in process = $60,000

Direct Expense Cost = Material + Labor + Overhead Cost

= $350,000 + $216,000 + $319,000 = $885,000

Closing Work in Process = $55,000

Thus Cost of goods manufactured = $60,000 + $885,000 - $55,000

= $890,000

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