Question

Company has the following balances for the current month: Direct materials used $ 23,000 Direct labor $ 19,800 Sales salaries $ 8,750 Indirect labor $ 1,500 Production manager's salary $ 6,210 Marketing costs $ 9,560 Factory lease $ 4,475 What is Robin's total manufacturing cost

Answer 1

cost of goods manufactured= $54,985

Step-by-step explanation:

Giving the following information:

Direct materials used $ 23,000

Direct labor $ 19,800

Indirect labor $ 1,500

Production manager's salary $ 6,210

Factory lease $ 4,475

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= direct materials + direct labor + allocated manufacturing overhead

cost of goods manufactured= 23,000 + 19,800 + (1,500 + 6,210 + 4,475)

cost of goods manufactured= $54,985