Final answer:
Manufacturing costs and other manufacturing costs are important in determining the total cost of production and can be used to calculate the cost of inventory or work-in-process.
Step-by-step explanation:
When calculating manufacturing costs, we consider the total of manufacturing costs and other manufacturing costs. Manufacturing costs include direct materials, direct labor, and factory overhead. Other manufacturing costs may include expenses such as utilities, maintenance, and depreciation of manufacturing equipment. These costs are important in determining the total cost of production and can be used to calculate the cost of inventory or work-in-process.
For example, if a manufacturing company incurs $10,000 in direct materials, $5,000 in direct labor, and $2,000 in factory overhead, the total manufacturing costs would be $17,000. If there is $7,000 worth of work-in-process, the total of manufacturing costs and work-in-process would be $24,000.