The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year: The Cost of Goods Manufactured was:

A) $19,900
B) $21,700
C) $41,600
D) $7,700

Question

The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year:             The Cost of Goods Manufactured was:A)  $19,900B)  $21,700C)  $41,600D)  $7,700

CHARLES MATTHEW SANTOS · Accepted Answer

Final Answer : B, Explanation :  The Cost of Goods Manufactured formula is: Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory.- The beginning balance in Work in Process Inventory is $8,500- Direct materials cost incurred during the year is $16,200- Direct labor cost incurred during the year is $12,000- Manufacturing overhead costs incurred during the year is $6,500- Ending Work in Process Inventory balance is $11,500Therefore, the Cost of Goods Manufactured is:$8,500 + ($16,200 + $12,000 + $6,500) - $11,500 = $21,700.Therefore, the answer is B.

The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year: The Cost of Goods Manufactured was:

A) $19,900
B) $21,700
C) $41,600
D) $7,700

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