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14 December, 05:05

Lots of Stuff Company reports the following data for its first year of operation. Cost of goods manufactured - $455,000

Work in process inventory, beginning - 0

Work in process inventory, ending - 140,000

Direct materials used - 110,000

Manufacturing overhead - 185,000

Finished goods inventory, beginning - 0

Finished goods inventory, ending - 90,000What are the total manufacturing costs?

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  1. 14 December, 05:21
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    Total manufacturing costs = $595,000

    Explanation:

    Giving the following information:

    Cost of goods manufactured - $455,000

    Work in process inventory, beginning - 0

    Work in process inventory, ending - 140,000

    Direct materials used - 110,000

    Manufacturing overhead - 185,000

    Finished goods inventory, beginning - 0

    Finished goods inventory, ending - 90,000

    Total manufacturing costs = direct material + direct labor + MOH

    Direct labor=?

    cost of goods manufactured = beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

    455000 = 0 + 110,000 + ? + 185,000 - 140,000

    Direct labor = 300,000

    Total manufacturing costs = 110,000 + 300,000 + 185000

    Total manufacturing costs = 595,000
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