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29 March, 14:09

Reich Manufacturing Company developed the following dа ta:

Beginning work in process inventory $ 90,000

Direct materials used 70,000

Actual overhead 110,000

Overhead applied 80,000

Cost of goods manufactured 160,000

Ending work in process 200,000

Reich Manufacturing Company's total current manufacturing costs for the period is:

A. $260,000.

B. $270,000.

C. $180,000.

D. $360,000.

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  1. 29 March, 14:12
    0
    Manufacturing costs = $270,000

    Explanation:

    Giving the following information:

    Beginning work in process inventory $ 90,000

    Direct materials used 70,000

    Actual overhead 110,000

    Overhead applied 80,000

    Cost of goods manufactured 160,000

    Ending work in process 200,000

    The manufacturing cost incurred for the period is the sum of direct labor, direct material, and allocated overhead.

    We need to determine the direct labor costs:

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

    160,000 = 90,000 + 70,000 + direct labor + 80,000 - 200,000

    160,000 + 200,000 = 240,000 + direct labor

    120,000 = direct labor

    Now, we can calculate the manufacturing costs:

    Manufacturing costs = direct material + direct labor + allocated overhead

    Manufacturing costs = 70,000 + 120,000 + 80,000 = $270,000
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