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Need help with accounting homework

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Current information for the Healey Company follows Beginning raw materials inventory Raw material purchases Ending raw materials inventory Beginning work in process inventory Ending work in process inventory Direct labor Total factory overhead $15,200 60,000 6,600 22,400 28,000 42,800 30,000 All raw materials used were traceable to specific units of product. Healey Company's Cost of Goods Manufactured for the year is O $125,800 O $128,600 O $131,400 O $137,000 O $139,000

Explanation / Answer

Cost of goods manufactured = beginning inventory + raw material purchase – ending raw material + direct labor cost + factory overhead cost + WIP at beginning – WIP at end

= 15200 + 60000 – 16600 + 42800 + 30000 + 22400 – 28000

= $125800

ANSWER= a) $125800

True, when direct labor and overhead enter the production process at different rate, it is appropriate to use a conversion cost per equivalent uit

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