Given the following data:?? Work in process, beginning $ 14 , 000 Work in process, ending 20 , 000 Direct labor costs 4 , 000 Cost of goods manufactured 8 , 000 Factory overhead 8 , 000 \begin{array} { l r } ext { Work in process, beginning } & \$ 14,000 \ ext { Work in process, ending } & 20,000 \ ext { Direct labor costs } & 4,000 \ ext { Cost of goods manufactured } & 8,000 \ ext { Factory overhead } & 8,000\end{array} Work in process, beginning Work in process, ending Direct labor costs Cost of goods manufactured Factory overhead $14 , 000 20 , 000 4 , 000 8 , 000 8 , 000 Direct materials used isA) $2,000B) $4,000C) $8,000D) $14,000

Question

Given the following data:??    Work in process, beginning  $ 14 , 000  Work in process, ending  20 , 000  Direct labor costs  4 , 000  Cost of goods manufactured  8 , 000  Factory overhead  8 , 000 \begin{array} { l r } 	ext { Work in process, beginning }  &  \$ 14,000 \	ext { Work in process, ending }  &  20,000 \	ext { Direct labor costs }  &  4,000 \	ext { Cost of goods manufactured }  &  8,000 \	ext { Factory overhead }  &  8,000\end{array}  Work in process, beginning   Work in process, ending   Direct labor costs   Cost of goods manufactured   Factory overhead  ​ $14 , 000 20 , 000 4 , 000 8 , 000 8 , 000 ​   Direct materials used isA)  $2,000B)  $4,000C)  $8,000D)  $14,000

Aimee Mahindaratne · Accepted Answer

Final Answer : A, Explanation :  To find the direct materials used, we start with the formula for the cost of goods manufactured (CGM): CGM = Beginning Work in Process + Total Manufacturing Costs - Ending Work in Process. Given that CGM is $8,000, Beginning Work in Process is $14,000, and Ending Work in Process is $20,000, we can solve for Total Manufacturing Costs. Total Manufacturing Costs include Direct Labor, Factory Overhead, and Direct Materials. We know Direct Labor is $4,000 and Factory Overhead is $8,000. Rearranging the formula and solving for Direct Materials gives us Direct Materials = CGM - Direct Labor - Factory Overhead + Ending Work in Process - Beginning Work in Process = $8,000 - $4,000 - $8,000 + $20,000 - $14,000 = $2,000.

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