Question

Jordan Sports Inc. has labor costs and overhead totaling $1.3 million during a given period. The company purchased $9.4 million of materials during the period and used $8.6 million of this amount. What is the amount of total manufacturing cost for the period?

Answer 1

Jordan Sports Inc.

The amount of total manufacturing cost for the period is:

= $9.9 million

Step-by-step explanation:

a) Data and Calculations:

Labor and overhead costs = $1.3 million

Cost of materials used - $8.6 million

Total manufacturing cost = $9.9 million

Cost of materials purchased = $9.4 million

Less Cost of materials used 8.6 million

Ending inventory of materials = $0.8 million

b) The total manufacturing cost for the period is the aggregate of costs of direct materials, direct labor, and manufacturing overheads incurred by Jordan Sports, Inc. to produce its products. It does not include the cost of ending inventory of materials of $0.8 million, which will be consumed in the following period.