Question

Hayward Manufacturing Company developed the following data:

Beginning work in process inventory $900,000
Direct materials used 700,000
Actual overhead 1,100,000
Overhead applied 800,000
Cost of goods manufactured 1,200,000
Ending work in process 1,500,000
Hayward Manufacturing Company's total manufacturing costs for the period is

Answer 1

Hayward Manufacturing Company's total manufacturing costs for the period are calculated by adding the direct materials used ($700,000) and the actual overhead ($1,100,000), which totals $1,800,000.

Step-by-step explanation:

To calculate Hayward Manufacturing Company's total manufacturing costs for the period, we must add together the direct materials used, the actual overhead, and the cost of labor. The provided data does not include labor costs explicitly, so we underscore that lacking information, we consider only direct materials and overhead.

Using the data:

• Beginning work in process inventory: $900,000 (Not used in the total manufacturing costs calculation for the period.)
• Direct materials used: $700,000
• Actual overhead: $1,100,000
• Overhead applied: $800,000 (Not used in this calculation, as it relates to the overhead that was budgeted rather than actual expenses.)
• Cost of goods manufactured: $1,200,000 (This is the output value after total manufacturing costs are incurred.)
• Ending work in process inventory: $1,500,000 (Not used in the total manufacturing costs calculation for the period.)

We focus on direct materials and the actual overhead costs:

• $700,000 (Direct materials used)
• +$1,100,000 (Actual overhead)

This results in Hayward Manufacturing Company's total manufacturing costs being $700,000 + $1,100,000 = $1,800,000 for the period.