Homework SourseTierney Construction Inc recently lost a portion of its fina
Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting information remained in the office files:
Finished goods inventory, January 1, 2018
Direct labor cost incurred during the period amounted to 2.4 times the factory overhead. The CFO of Tierney Construction, Inc. has asked you to recalculate the following accounts and to report to him by the end of tomorrow.
What should be the amount of total manufacturing cost?
| Cost of Goods Sold | $75,300 | ||||||||||
| Work-in-Process Inventory, January 1, 2018 | $17,700 | ||||||||||
| Work-in-Process Inventory, December 31, 2018 | $13,800 | ||||||||||
| Selling and Administrative Expense | $15,200 | ||||||||||
| Net Income | $27,900 | ||||||||||
| Factory overhead | $19,900 | ||||||||||
| Direct materials inventory, January 1, 2018 | $24,600 | ||||||||||
| Direct materials inventory, December 31, 2018 | $13,300 | ||||||||||
| Cost of goods manufactured | $92,700 | ||||||||||
| Finished goods inventory, January 1, 2018 Direct labor cost incurred during the period amounted to 2.4 times the factory overhead. The CFO of Tierney Construction, Inc. has asked you to recalculate the following accounts and to report to him by the end of tomorrow. What should be the amount of total manufacturing cost?
| $29,500 | ||||||||||
Solution
Total Manufacturing Cost refers to the Cost of Goods Sold, therefore, the total manufacturing cost is $75,300 Option D is correct answer.
