Walker Company reported the following year-end information: Beginning work in process inventory $ 46 , 000 Beginning raw materials inventory 24 , 000 Ending work in process inventory 50 , 000 Ending raw materials inventory 20 , 000 Raw materials purchased 830 , 000 Direct labor 440 , 000 Manufacturing overhead 100 , 000 \begin{array}{lr} ext { Beginning work in process inventory } & \$ 46,000 \ ext { Beginning raw materials inventory } & 24,000 \ ext { Ending work in process inventory } & 50,000 \ ext { Ending raw materials inventory } & 20,000\ ext { Raw materials purchased } & 830,000 \ ext { Direct labor } & 440,000 \ ext { Manufacturing overhead } & 100,000\end{array} Beginning work in process inventory Beginning raw materials inventory Ending work in process inventory Ending raw materials inventory Raw materials purchased Direct labor Manufacturing overhead $46 , 000 24 , 000 50 , 000 20 , 000 830 , 000 440 , 000 100 , 000 How much is Walker's cost of goods manufactured for the year?A) $834000B) $1374000C) $1370000D) $1378000

Question

Walker Company reported the following year-end information:    Beginning work in process inventory  $ 46 , 000  Beginning raw materials inventory  24 , 000  Ending work in process inventory  50 , 000  Ending raw materials inventory  20 , 000  Raw materials purchased  830 , 000  Direct labor  440 , 000  Manufacturing overhead  100 , 000 \begin{array}{lr}	ext { Beginning work in process inventory }  &  \$ 46,000 \	ext { Beginning raw materials inventory }  &  24,000 \	ext { Ending work in process inventory }  &  50,000 \	ext { Ending raw materials inventory }  &  20,000\	ext { Raw materials purchased }  &  830,000 \	ext { Direct labor }  &  440,000 \	ext { Manufacturing overhead }  &  100,000\end{array}  Beginning work in process inventory   Beginning raw materials inventory   Ending work in process inventory   Ending raw materials inventory   Raw materials purchased   Direct labor   Manufacturing overhead  ​ $46 , 000 24 , 000 50 , 000 20 , 000 830 , 000 440 , 000 100 , 000 ​   How much is Walker's cost of goods manufactured for the year?A)  $834000B)  $1374000C)  $1370000D)  $1378000

Melinda Swanson · Accepted Answer

Final Answer : C, Explanation :  To calculate the cost of goods manufactured, we first determine the total manufacturing costs, which include direct materials used, direct labor, and manufacturing overhead. Direct materials used is calculated as beginning raw materials inventory plus raw materials purchased minus ending raw materials inventory: $24,000 + $830,000 - $20,000 = $834,000. Adding direct labor ($440,000) and manufacturing overhead ($100,000) gives total manufacturing costs of $1,374,000. Then, we adjust for the change in work in process inventory: beginning work in process ($46,000) minus ending work in process ($50,000) results in a decrease of $4,000, which when subtracted from the total manufacturing costs, gives the cost of goods manufactured as $1,370,000.

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