Question

The following data (in thousands of dollars) have been taken from the accounting records of Karmint Corporation for the just completed year: sales - $830; raw materials inventory, beginning - $50, raw materials inventory, ending - $40; purchases of raw materials - $150; direct labor - $140: manufacturing overhead - $160; administrative expenses - $120; selling expenses - $150; work in process inventory, beginning - $30; work in process inventory, ending - $50; finished goods inventory, beginning - $80; finished goods inventory, ending - $100.The cost of goods manufactured (finished) for the year (in thousand of dollars) was:A) $480.B) $490.C) $440.D) $510.

Answer 1

The correct answer is: C= $440

Step-by-step explanation:

Giving the following information:

sales - $830;

raw materials inventory, beginning - $50,

raw materials inventory, ending - $40;

purchases of raw materials - $150;

direct labor - $140

manufacturing overhead - $160;

administrative expenses - $120;

selling expenses - $150;

work in process inventory, beginning - $30;

work in process inventory, ending - $50;

finished goods inventory, beginning - $80;

finished goods inventory, ending - $100.

Cost of goods manufactured= beginning work in process + direct materials + direct labor + manufacturing overhead - ending work in process

Cost of goods manufactured= 30 + (50 + 150 - 40) + 140 + 160 - 50= $440