Perry Company manufactures wood file cabinets. The following information is avai

Question

Perry Company manufactures wood file cabinets. The following information is available for June of the current year.
Beginning Ending
Raw Material Inventory $ 6,000 $ 7,500
Work in Process Inventory 17,300 11,700
Finished Goods Inventory 21,000 16,300

The direct labor rate is $9.60 per hour and overhead for the month was $9,600.


47. Refer to Perry Company. Compute total manufacturing costs for June, if there were 1,500 direct labor hours and $21,000 of raw material was purchased.
a. $58,500 17300+(6000+21000-7500)+9600+1500
b. $46,500
c. $43,500
d. $43,100

Explanation / Answer

Begining RM inventory                     $6,000
Add: Purchases                              $21,000
Less : Ending RM inventory             -$7,500
Raw materials consumed                                $19,500

Direct labor 1,500 x $9.60                              $14,400
Overhead                                                        $9,600
Total manufacturing Cost                           $43,500
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