Hatfield Manufacturing Company uses job-order costing. The company utilized annu

Question

Hatfield Manufacturing Company uses job-order costing. The company utilized annual estimates of overhead and machine hours in determining its overhead rate of $1.50 per machine hour. Data from the month of May is as follows: Factory rent $32,000 Direct labor $41,000 Factory depreciation $15,000 Administrative salaries $42,000 Indirect materials used in production $16,000 Direct materials used in production $140,000 Actual machine hours 20,000 Estimated machine hours 19,600 How much are total manufacturing costs added to work in process during the period? $211,000 $181,000 $134,000 Some other answer

Explanation / Answer

Calulation of Total Manufacturing cost

Note- Admin Salary is not the part of manufacturing cost, it's a part of income statement

Depreciation is not clearly mentioned, for which equipment? equipment used in production process ?

Direct Material 140000 Direct Labor 41000 Overheads- Indirect Material 16000 Overheads- Machine Exps. (20000*1.50) 30000 Factory Rent 32000 Total Manufacturing Cost 259000

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