Question

Compute the total manufacturing cost for a manufacturer with the following information for the month.

Raw materials purchased $ 32,400
Direct materials used 53,750
Direct labor used 12,000
Factory supervisor salary 8,000
Salesperson commissions 6,200
Depreciation expense—Factory building 3,500
Depreciation expense—Delivery equipment 2,200
Indirect materials 1,250

Answer 1

$78,500

Step-by-step explanation:

Given;

Raw materials purchased = $32,400

Direct materials used = $53,750

Direct labor used = $12,000

Factory supervisor salary = $8,000

Salesperson commissions = $6,200

Depreciation expense—Factory building = $3,500

Depreciation expense—Delivery equipment = $2,200

Indirect materials = $1,250

Total manufacturing cost = $53,750 + $12,000 + $8,000 + $3,500 + $1,250

= $78,500

Depreciation expense—Delivery equipment and Salesperson commissions are elements of selling cost. Raw materials purchased is part of direct material cost.