Hard Walks Inc How Much Is Cost of Goods Manufactured for June?
A)$348,900

question 86

Multiple Choice

Hard Walks Inc.designs and builds custom sidewalks and employs a job-order costing system.During June, the company's transactions and accounts included the following: $\begin{array}{lr}\text { Raw materials purchased } & \$ 282,000 \\\text { Direct materials used in production } & 290,000 \\\text { Raw materials inventory, beginning } & 11,400 \\\text { Corporate administrative costs } & 22,500 \\\text { Selling expenses } & 16,500 \\\text { Sales } & 389,000 \\\text { Total manufacturing overhead applied } & 45,300 \\\text { Total manufacturing overhead incurred } & 49,100 \\\text { Finished goods, beginning } & 21,400 \\\text { Work in process inventory, beginning } & 31,800 \\\text { Work in process inventory, ending } & 28,700 \\\text { Direct labor cost incurred } & 42,300 \\\text { Finished goods, ending } & 23,500\end{array}$ How much is cost of goods manufactured for June?

• A)$348,900
• B)$377,600
• C)$380,700
• D)$384,500

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Definitions:

Traditional Income Statement

A traditional income statement is a financial document that reports a company's financial performance over a specific period, showing revenues minus expenses to reveal net income or net loss.

Contribution Margin Format

A format of income statement that separates variable costs from fixed costs to calculate contribution margin, which helps in analyzing profitability.

Absorption Costing

A financial accounting approach that encompasses all expenses of manufacturing, like direct materials, direct labor, along with variable and fixed overhead costs, into the pricing of a product.

Product Cost

The total expense incurred to produce a product, including direct materials, direct labor, and overhead costs.