[The following information applies to the questions displayed below.] If direct

ID: 2419409 • Letter: #

Question

[The following information applies to the questions displayed below.]

If direct materials used during the year were $154,000, what was cost of goods manufactured?

None of these.

$577,000.

$159,500.

$582,500.

$428,500.

If the cost of goods manufactured for the year was $576,000, what was the amount of direct materials used during the year?

$147,500.

$142,000.

$202,500.

None of these.

$45,500.

Work-in-process inventory, January 1, 2011 $ 62,000 Work-in-process inventory, December 31, 2011 $ 67,500 Conversion costs during the year $ 434,000

Direct Materials = Beginning Work in process + Direct materials used - Ending Work-in-process

= $62000+154000-67500 = $148,500.

Add: Conversion costs = $434000

Total = $148500+434000 = $582500.

Therefore, the cost of goods manufactured = $582,500.

Therefore, the correct answer is option C.

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