Question

Assuming that the direct materials used are $1880000, compute the total manufacturing costs using the following information.

Raw materials inventory, January 1 $ 20000
Raw materials inventory, December 31 40000
Work in process, January 1 18000
Work in process, December 31 12000
Finished goods, January 1 40000
Finished goods, December 31 32000
Raw materials purchases 1900000
Direct labor 760000
Factory utilities 150000
Indirect labor 50000
Factory depreciation 400000
Operating expenses 420000
A. $420000
B. $3060000.
C. $3660000.
D. $3240000.
E. $3246000.

Answer 1

D. $3240000.

Step-by-step explanation:

Particulars Amount ($) Amount ($)

Direct materials used 1,880,000

Direct Labor 760,000

Manufacturing Overheads

Factory Utilities 150,000

Indirect Labor 50,000

Factory Depreciation 400,000 600,000

Total Manufacturing cost $3,240,000