Question

Use the cost information below for Ruiz Inc. to determine the total manufacturing costs incurred during the year:

Work in Process, January 1 $ 51,800
Work in Process, December 31 37,900
Direct materials used $ 13,400
Total factory overhead 6,400
Direct labor used 27,400
Multiple Choice

a)$61,100.
b)$99,000.
c)$13,900.
d)$47,200.
e)$92,600.

Answer 1

To calculate the total manufacturing costs incurred during the year for Ruiz Inc., add the direct materials used ($13,400), total factory overhead ($6,400), and direct labor used ($27,400) to get a total of $47,200.

Step-by-step explanation:

To determine the total manufacturing costs incurred during the year for Ruiz Inc., we need to sum the direct materials used, total factory overhead, and direct labor used.

It is important to note that the work in process at the beginning and end of the year are not part of the total manufacturing costs for this specific year, as they represent inventory that may have been partially produced in different periods.

Here's the calculation:

Direct materials used: $13,400

Total factory overhead: $6,400

Direct labor used: $27,400

Adding these figures, the total manufacturing costs incurred during the year is:

$13,400 (Direct materials) + $6,400 (Factory overhead) + $27,400 (Direct labor) = $47,200.