Question

Chmelar Manufacturing Company developed the following data:

Beginning work in process inventory $ 120,000
Direct materials used 720,000
Actual overhead 840,000
Overhead applied 810,000
Cost of goods manufactured 1,920,000
Ending work in process 90,000
How much are total manufacturing costs for the period?

Answer 1

The total manufacturing costs for Chmelar Manufacturing Company for the period are $1,890,000. This is calculated by summing the Cost of Goods Manufactured, the Ending Work in Process Inventory, and subtracting the Beginning Work in Process Inventory.

Step-by-step explanation:

The student has provided financial data from Chmelar Manufacturing Company and has asked for the total manufacturing costs for the period. To calculate the total manufacturing costs, we need to sum the Direct Materials used, Actual Overhead, and Direct Labor costs. However, since the Direct Labor is not provided explicitly, we will use the Cost of Goods Manufactured formula: Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory = Cost of Goods Manufactured.

We rearrange the formula to solve for Total Manufacturing Costs: Total Manufacturing Costs = Cost of Goods Manufactured + Ending Work in Process Inventory - Beginning Work in Process Inventory.

Plugging in the values, we get: Total Manufacturing Costs = $1,920,000 + $90,000 - $120,000, which calculates to $1,890,000. Hence, the total manufacturing costs for the period are $1,890,000.