Given the Following Data for Mehring Company Compute (A) Total

question 90

Short Answer

Given the following data for Mehring Company compute (A) total manufacturing costs and (B) cost of goods manufactured: $\begin{array} { l r l r } \text { Direct materials used } & \$ 230,000 & \text { Beginning work in process } & \$ 30,000 \\ \text { Direct labor } & 150,000 & \text { Ending work in process } & 15,000 \\ \text { Manufacturing overhead } & 255,000 & \text { Beginning finished goods } & 38,000 \\ \text { Operating expenses } & 263,000 & \text { Ending finished goods } & 23,000 \end{array}$
$\begin{array}{lll} & {(\mathrm{A})}& (\mathrm{B}) \\\text { a. } & \$ 620,000 & \$ 650,000 \\\text { b. } & \$ 635,000 & \$ 620,000 \\\text { c. } & \$ 635,000 & \$ 650,000 \\\text { d. } & \$ 650,000 & \$ 665,000\end{array}$

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Definitions:

Total Revenue

The total amount of income generated by the sale of goods or services before any expenses are subtracted.

COGS

Cost of Goods Sold, which refers to the direct costs attributable to the production of the goods sold by a company.

Economic Value Added

A measure of a company's financial performance based on the premise that true profit occurs when additional wealth is created for shareholders, beyond the cost of capital invested.