Demur inc., a manufacturing company, has provided the following data for the month of april. the balance in the work-in-process inventory account was $10,000 at the beginning of the month and $22,000 at the end of the month. during the month, the company incurred direct materials cost of $63,000 and direct labor cost of $39,000. the actual manufacturing overhead cost incurred was $40,000. the manufacturing overhead cost applied to work-in-process was $43,000. the cost of goods manufactured for april was: multiple choice $133,000. $142,000. $145,000. $130,000.

The correct answer is D.

Explanation:

Giving the following information:

The balance in the Work-in-Process Inventory account was $10,000 at the beginning of the month and $22,000 at the end of the month. During the month, the company incurred direct materials cost of $63,000 and the direct labor cost of $39,000. The actual manufacturing overhead cost incurred was $40,000. The manufacturing overhead cost applied to Work-in-Process was $43,000.

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 10,000 + 63,000 + 39,000 + 40,000 - 22,000= $130,000

The answer is $130,000

Explanation:

Direct Material + Direct Labour = Prime Cost

$63,000 +$39,000 = $102,000

Manufacturing overhead

Indirect Labour + opening work in process - closing work in process = overhead

$40,000 + 10,000 - $ 22,000 = $28,000

Prime Cost + Overhead = Total cost of Production

$102,000 + $28,000 = $130,000

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