Current information for the healey company follows:
beginning raw materials inventory $15,200
raw material purchases 60,000
ending raw materials inventory 16,600
beginning work in process inventory 22,400
ending work in process inventory 28,000
direct labor 42,800
total factory overhead 30,000
all raw materials used were traceable to specific units of product. healey company's cost of goods manufactured for the year is:
$125,800.
$128,600.
$131,400.
$137,000.
$139,000.

The correct answer would be option A, $125800.

Explanation:

Cost of goods manufactured= Total costs + beginning work in process - Ending work in process

Total costs include Direct Materials, Direct labor and Factory Overheads. So the Above formula can be written as:

CGM = (Direct materials + Direct Labor + Factory overhead) + Beginning WIP  - Ending WIP

Now

Direct Materials = Beginning raw materials + Purchased Raw Materials - Ending Raw materials

= 15200+60000-16600= 58600

Now Direct labor given is = 42800

And Factory Overheads = 30000

So,

Total costs= direct materials + Direct Labor + Factory Overhead

Total Costs= 58600 + 42800 + 30000  

= 131400  

Beginning work in process = 22400

Ending work in process = 28000

NOW Costs of Goods Manufactured/CGM = Total Cost + Beginning WIP -Ending WIP

= 131400+22400-28000

=$125800

the answer is b for dog

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