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30 December, 11:20

During 2020, $830000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurred was $640000. Waterway Industries's total manufacturing costs incurred in 2020 amounted to

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  1. 30 December, 11:29
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    Waterway Industries's total manufacturing costs incurred in 2020 amounted to $2,140,000

    Explanation:

    The computation of the total manufacturing cost is shown below:

    = Raw material + Direct labor cost + Manufactured overhead cost

    = $830,000 + $670,000 + $640,000

    = $2,140,000

    Thus, the total manufacturing cost is comprised of direct raw material, direct labor cost, and the manufacturing overhead cost. That's why we add these three costs.
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