Question

Information from the records of Chrome Ponies Enterprises for June 2018 is as follows:

a) Sales $41,000
b) Direct Labor $10,000
c) Selling and admin. expenses $7,000
d) Direct materials purchases $5,600
e) Factory overhead $13,500
Inventories
a) June 1, 2018 June 30, 2018
b) Direct materials $1,200 $1,300
c) Work in process $2,500 $2,800
d) Finished goods $2,300 $1,900
What are the total manufacturing costs added?
a) $18,500
b) $19,300
c) $29,000
d) $29,400

Answer 1

The total manufacturing costs added by Chrome Ponies Enterprises in June 2018 is calculated by summing the direct labor, direct materials purchases, and factory overhead, totaling $29,100. Option (c) $29,000 is the closest available choice and thus represents the answer.

Step-by-step explanation:

To calculate the total manufacturing costs added for Chrome Ponies Enterprises in June 2018, we add the direct labor, direct materials purchases, and factory overhead costs. Given the information from the records:

• Direct Labor: $10,000
• Direct Materials Purchases: $5,600
• Factory Overhead: $13,500

The total manufacturing costs for the period are calculated as follows:

Total Manufacturing Costs = Direct Labor + Direct Materials Purchases + Factory Overhead

Total Manufacturing Costs = $10,000 + $5,600 + $13,500 = $29,100

Option (c) $29,000 is the closest available choice; therefore, it represents the total manufacturing costs added.