The Following Information Appears on the Statement of Cost of Goods

question 6

Multiple Choice

The following information appears on the Statement of Cost of Goods Manufactured for the Ethridge Company at the end of the year. $$\begin{array} { l r } \text { Raw Materials Used } & \$ 70,000 \\\text { Manufacturing Overhead } & 90,000 \\\text { Direct Labor } & 60,000 \\\text { Work in Process Inventory, January 1 } & 20,000 \\\text { Work in Process Inventory, December 31 } & 30,000\end{array}$$ Cost of Goods Manufactured for the year was:

• A) $200,000.
• B) $210,000.
• C) $220,000.
• D) $240,000. Total Manufacturing Costs = Raw Material Used + Direct Labor + Manufacturing Overhead
• = 70,000 + 90,000 + 60,000 = 220,000.
• Cost of Goods Manufactured = 20,000 + 220,000 - 30,000 = 210,000.

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