Question

A.S. Design Corporation reports the following cost information for March:Cost of Goods Manufactured $80,000Finished Goods Inventory, March 1 4,500Finished Goods Inventory, March 31 2,700Work-in-Process Inventory, March 1 9,670Work-in-Process Inventory, March 31 1,000Direct Labor 36,300Direct Materials Used 16,900What is the amount of manufacturing overhead incurred by the company in March?

Answer 1

The amount of manufacturing overhead incurred by the company in March is $18,130

Step-by-step explanation:

The computation of the manufacturing overhead is shown below:

= Cost of Goods Manufactured - Direct Labor - Direct Materials Used + Work-in-Process Inventory, March 31 - Work-in-Process Inventory, March 1

= $80,000 - $36,300 - $16,900 +$1,000 - $9,670

= $18,130

While computing the manufacturing overhead, we have to deduct the direct labor, direct material, and beginning work in progress and the other item which is displayed should be added