the accounts shown are from last years books at sharp manufacturing. sharp uses job - order costing and…

the accounts shown are from last years books at sharp manufacturing. sharp uses job - order costing and applies manufacturing overhead to jobs based on direct labor costs. whats the amount of cost of goods manufactured for the year?\na) $255,000\nb) $251,000\nc) $226,000\nd) $223,000

the accounts shown are from last years books at sharp manufacturing. sharp uses job - order costing and applies manufacturing overhead to jobs based on direct labor costs. whats the amount of cost of goods manufactured for the year?\na) $255,000\nb) $251,000\nc) $226,000\nd) $223,000

Answer

Explanation:

Step1: Recall the formula for cost of goods manufactured

The cost of goods manufactured is the amount transferred from the Work - In - Process account to the Finished Goods account.

Step2: Identify the relevant entry

Looking at the Work - In - Process T - account, the entry (f) which is transferred to Finished Goods is $251,000.

Answer:

B. $251,000