Explore BrainMass

# Wayne's Company: What is the amount of cost of goods manufac

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Wayne Company's beginning and ending inventories for the month of June were as follows:

June 1 June 30
Direct Materials \$67,200 \$62,400
Work in Process \$144,900 \$171,100
Finished Goods \$84,500 \$78,100

Production data for the month follow:

Direct labor cost incurred \$200,400
Direct labor-hours 24,900
Actual manufacturing overhead cost incurred \$131,600
Direct materials purchases \$165,200

Wayne applies manufacturing overhead cost to jobs based on direct labor-hours, and the predetermined rate is \$6 per direct labor-hour. The company does not close underapplied or overapplied manufacturing overhead to Cost of Goods Sold until the end of the year. What is the amount of cost of goods manufactured?

\$493,600
\$491,100
\$496,600
\$500,100

#### Solution Preview

Wayne Company's beginning and ending inventories for the month of June were as follows:
June 1 June 30
Direct Materials \$67,200 \$62,400
Work in Process \$144,900 \$171,100
Finished Goods \$84,500 \$78,100

Work in Process, June 1 144,900
Direct Materials
Direct Materials, June 1 67,200