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During 2020, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much is total manufacturing costs incurred during 2020 for Benson?

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Answer:Total manufacturing cost = $1,876,000

Cost of goods sold =$1,668,000

Step-by-step explanation:

The Total manufacturing costs is defined as how much a company uses in production of its inventory at a particular time. It takes three costs into consideration and they are Direct materials, Direct labor and Manufacturing overhead.

it is calculated using the formulae.

Total manufacturing cost = Direct materials + Direct labor + Manufacturing overhead

Direct raw materials =Beginning raw materials +materials purchased -Ending raw materials

=84000+1,450,000-68000=$1,466,000

Total manufacturing cost =$1,466,000+ $250,000 +$160,000

= $1,876,000

The total manufacturing costs incurred during 2020 for Benson is $1,876,000

Cost of goods sold = Beginning Inventory of Finished goodd + Cost of Goods – Ending Inventory Of finished goods.

$100,000 + $1,660,000 - 92,000

$1,668,000

Note :

The beginning inventory =the value of inventory at end of the previous year.

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