Question

Using the information below for Singing Dolls, Inc., determine the total manufacturing costs incurred during the year: Work in Process, January 1 $ 53,200 Work in Process, December 31 38,600 Direct materials used 14,100 Total Factory overhead 7,100 Direct labor used 28,100

Answer 1

Answer:

During the year, the company added cost for 49,300

And finished goods for  63,900

Explanation:

The total cost has three main components, direct materials, direct labor and overhead. Those are the cost the company add through the period.

This along with the beginning inventory of WIP will be the total cost to be accounted for.

This can become finished good or remain at Work in process at the end of the period, therefore we can solve for cost of goods manufactured (finished goods) by subtracting the ending WIP from the total cost to be accounted.

Beginning Work in Process               53,200

Cost added during the period:

Direct materials                        14,100

Direct Labor                            28,100

Manufacturing    Overhead      7,100

Total Cost added during the period   49,300

Ending Work in Process                     (38,600)

Cost of good manufactured              63,900