Gail K. Company manufactures waterproof cell phone covers. During the current month, the controller purchased $26,700 of materials, $4,300 of which are indirect materials. At the beginning of the month, Gail had 50 partially complete cell phone covers on hand. The cost of these partially complete units was $7,200. During the month, the company incurred the following costs to complete these units and to start and complete 8,250 new units.

What is the cost of goods manufactured for the period?

A : $73,900

B : $90,500

C : $81,600

D : $88,800

Transcribed Image Text:

Material used (direct $21,300; indirect $3,700) Hourly wages paid (direct $34,100; indirect $5,900) Production manager's salary Factory rent Factory utilities Factory insurance Factory janitorial service $25,000 40,000 5,200 4,900 3,620 2,080 800 Material used (direct $21,300; indirect $3,700) Hourly wages paid (direct $34,100; indirect $5,900) Production manager's salary Factory rent Factory utilities Factory insurance Factory janitorial service $25,000 40,000 5,200 4,900 3,620 2,080 800

Answer rating: 100% (QA)

D 88800 Direct materials 21300 Direct labor 34100 Manufacturing overhead Indirect ... View the full answer