QUESTION 25 Calculate the total manufacturing costs incurred during the year for

Question

QUESTION 25 Calculate the total manufacturing costs incurred during the year for D Corporation based on the information given below Beginning balance work-in-process inventony $26,000 58,000 83,000 61,000 Ending balance work-in-process inventory Beginning balance raw materials inventory Ending balance raw materials inventory Purchases-raw materials Direct labor Indirect labor Depreciation on factory plant equipment Plant utilities and insurance 359,000 21,000 271,000 468,000 23,000 A $696,000 ® $315,000 $849.000 D $1,164,000

Explanation / Answer

Total manufacturing cost = Direct material + direct labour + indirect labour + depreciation + plant and utilities

= ($83000+359000-61000) + 468000 + 21000 + 23000 + 271000

= $381000 + 468000 + 21000 + 23000 + 271000

= $1164000

Option D is correct

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