Disc Golf manufacturer, Throw-it-Far Inc is working on completing their accounting information for AugustInventories:August 1August 31Raw material$15,000$18,000Work in process6,0009,000Finished goods36,00027,000Additional information for December: Raw material purchased$42,000 Direct labor hours5,000 Direct labor rate per hour7.50 Overhead rate per direct labor hour10.00 For December, Cost of Goods Manufactured wasGroup of answer choicesa)$118,000.b)$109,000.c)$112,000.d)$117,500

Answered: Disc Golf manufacturer, Throw-it-Far…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Disc Golf manufacturer, Throw-it-Far Inc is working on completing their accounting information for August

Inventories:	August 1	August 31
Raw material	$15,000	$18,000
Work in process	6,000	9,000
Finished goods	36,000	27,000
Additional information for December:
Raw material purchased	$42,000
Direct labor hours	5,000
Direct labor rate per hour	7.50
Overhead rate per direct labor hour	10.00

For December, Cost of Goods Manufactured was

Group of answer choices

a)$118,000.

b)$109,000.

c)$112,000.

d)$117,500

Expert Solution

Step 1

Cost of goods manufactured:

Cost of goods manufactured is the total manufacturing costs which includes all the direct materials costs, direct labor costs, and the factory overhead costs; to the beginning work in process inventory and subtracting the ending goods in process inventory.

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