Messana Corporation reported the following data for the month of August: The cos

ID: 2421251 • Letter: M

Question

Messana Corporation reported the following data for the month of August:

The cost of goods manufactured for August is:

$227,000

$229,000

$219,000

$217,000

Inventories: Beginning Ending Raw materials $36,000 $24,000 Work in process $23,000 $17,000 Finished goods $37,000 $55,000 Additional information: Raw materials purchases $69,000 Direct labor cost $94,000 Manufacturing overhead cost incurred $54,000 Indirect materials included in manufacturing overhead cost incurred
$8,000 Manufacturing overhead cost applied to Work in Process $56,000

Explanation / Answer

answer = b) $229000

Messana Corporation

Schedule of cost of goods manufacture

Direct materials:

Beginning raw material inventory

$36000

Add- Raw materials available for use

$69000

Less- ending raw material inventory

$24000

Direct material used in production

$81000

Add- Direct labor

$94000

Manufacturing overhead cost incurred

$54000

Cost of goods manufactured

$ 229000