Question

Francum Company has the following data: direct labor $250,000, direct materials used $197,000, total manufacturing overhead $234,000, and beginning work in process $36,000.

Total manufacturing costs

Compute total cost of work in process.

Answer 1

The total cost of work in process for Francum Company is $717,000, obtained by summing the direct labor, direct materials used, total manufacturing overhead, and beginning work in process.

Step-by-step explanation:

The total cost of work in process for Francum Company is $717,000. This is calculated by adding the direct labor cost ($250,000), the cost of direct materials used ($197,000), and total manufacturing overhead ($234,000) together and then adding the beginning work in process ($36,000).

Here is a step-by-step explanation:

1. Add the direct labor cost to the cost of direct materials used: $250,000 + $197,000 = $447,000.
2. Add the total manufacturing overhead to the sum from the previous step: $447,000 + $234,000 = $681,000.
3. Finally, add the beginning work in process to find the total cost of work in process: $681,000 + $36,000 = $717,000.

This calculation allows us to understand how the costs accumulate during the production process, providing important insights into the cost structure of Francum Company.