Current information for the healey company follows: beginning raw materials inventory $15,200 raw material purchases 60,000ending raw materials inventory 16,600beginning work in process inventory 22,400ending work in process inventory 28,000direct labor 42,800total factory overhead 30,000all raw materials used were traceable to specific units of product. healey company's cost of goods manufactured for the year is: a. $125,800.b. $128,600.c. $131,400.d. $137,000.e. $139,000.

The correct answer is A.

Explanation:

Giving the following information:

Beginning raw materials inventory $15,200

Raw material purchases 60,000

Ending raw materials inventory 16,600

Total direct material used during the period= (15,200 + 60,000 - 16,600)= $58,600

Beginning work in process inventory 22,400

Ending work in process inventory 28,000

Direct labor 42,800

Total factory overhead 30,000

To calculate the cost of goods manufactured we need to use the following formula:

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

cost of goods manufactured= 22,400 + 58,600 + 42,800 + 30,000 - 28,000= $125,800

d. low interest rates