Tierney Construction, Inc. recently lost a portion of its financial records in a
ID: 2407913 • Letter: T
Question
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 $92,700Finished 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?
A.$106,500 B.$92,700 C.$88,800 D.$75,300 $29,500Explanation / Answer
Total Manufacturing Cost refers to the Cost of Goods Sold, therefore, the total manufacturing cost is $75,300 Option D is correct answer.