Question

Marigold Corp.'s accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 Raw materials inventory $390000 $340000 Work in process inventory 300000 160000 Finished goods inventory 190000 150000 During 2017, $890000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurred was $640000. Marigold Corp.'s total manufacturing costs incurred in 2017 amounted to_________________

Answer 1

total cost incurred 2,250,000

Step-by-step explanation:

From the inventory identity we solve for the added materials:

`$$Beginning Inventory + Purchase = Ending Inventory + added`

Beginning raw 390,000

purchase 890,000

ending raw (340,000)

added materials 940,000

Then, we solve for the cost adeed during the period, which are the cost incurred during the period:

added materials 940,000

labor 670,000

applied overhead 640,000

total cost incurred 2,250,000