Question

Westerville Company's beginning and ending inventories for the month of May are May 1 May 31 Direct Materials $67,000 $62,000 Work in Process $145,000 $171,000 Finished Goods $85,000 $78,000 Production data for the month of May follows: Direct labor $200,000 Actual manufacturing overhead $132,000 Direct materials purchased $163,000 Transportation in $2,000 Westerville Company uses one overhead control account and charges overhead to production at 70% of direct labor cost. The company does not formally close the account until the end of the year. Westerville Company's total manufacturing cost for May is $363,000 $510,000 $503,000 $502,000

Answer 1

$510,000

Step-by-step explanation:

The computation of the total manufacturing cost is shown below:

= Direct material + direct labor + manufacturing overhead

where,

Direct material is

= Opening balance + purchase + transportation - ending balance

= $67,000 + $163,000 + $2,000 - $62,000

= $170,000

Direct labor is $200,000

And, the manufacturing overhead is

= $200,000 × 70%

= $140,000

So, the total manufacturing cost is

= $170,000 + $200,000 + $140,000

= $510,000