Question

Compute the total manufacturing cost for a manufacturer with the following information for the month. Raw materials purchased $ 43,200 Direct materials used 58,250 Direct labor used 14,000 Factory supervisor salary 8,800 Salesperson commissions 6,000 Depreciation expense—Factory building 3,700 Depreciation expense—Delivery equipment 3,400 Indirect materials 1,800

Answer 1

Cost of good manufactured= $86550

Step-by-step explanation:

To calculate the cost of manufactured goods we need to use the following formula:

Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress

Beginning work in progress= 0

Direct materials = beginning inventory + purchase - ending inventory= 58250

Direct labor= 14000

Manufactured overhead=Factory supervisor salary + Depreciation expense Factory building + Indirect materials= 8800 + 3700 + 1800= 14300

Ending work in progress= 0

Cost of good manufactured= 58250 + 14000 + 14300= $86550