Question

Using the information below for Sundar Company; determine the total manufacturing costs added during the current year:

Direct materials used $19,500
Direct labor used 25,000
Factory overhead 52,600
Beginning work in process 11,200
Ending work in process 11,800

Answer 1

Answer: $96,500

Explanation:

Manufacturing cost includes all the costs that went into production in a period including direct costs and manufacturing overhead:

= Direct materials + Direct labor + Manufacturing Overhead

Manufacturing overhead = Beginning work in process + Factory overhead - Ending work in process

= 11,200 + 52,600 - 11,800

= $52,000

Manufacturing cost = 19,500 + 25,000 + 52,000

= $96,500