Question

Tall Timbers reports the following data for its first year of operation.

Work in process​ inventory, beginning ​$ 0
Work in process​ inventory, ending​ 50,400
Manufacturing overhead ​25,400
Direct materials used​ 7,700
Direct Labor​ 60,000
Finished goods​ inventory, beginning 0
Finished goods​ inventory, ending​ 20,000
Cost of goods manufactured​ 42,700

What are the total manufacturing costs to account​ for?

Answer 1

$93,100

Step-by-step explanation:

Given that,

Work in process​ inventory, beginning = ​$ 0

Work in process​ inventory, ending =​ 50,400

Manufacturing overhead = ​25,400

Direct materials used​ = 7,700

Direct Labor​ = 60,000

Finished goods​ inventory, beginning = 0

Finished goods​ inventory, ending =​ 20,000

Cost of goods manufactured​ = 42,700

Therefore,

Manufacturing Cost:

= Direct Materials used + Direct Labor + Manufacturing Overhead

= $7,700 + $60,000 + $25,400

= $93,100