Question

Vaughn Manufacturing's accounting records reflect the following inventories: Dec. 31, 2020 Dec. 31, 2019Raw materials inventory $350000 $290000Work in process inventory 300000 160000Finished goods inventory 190000 150000During 2020, $840000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurred was $640000.Vaughn Manufacturing's total manufacturing costs incurred in 2020 amounted to

Answer 1

Answer:

$2,090,000

Explanation:

The computation of the total manufacturing cost is shown below:

Total manufacturing cost = Cost of direct materials used + direct labor cost + manufacturing overhead  cost incurred

where,

Cost of direct materials used = Beginning balance of raw material + Purchase of direct materials - ending balance of raw material

= $290,000 + $840,000 - $350,000

= $780,000

So, the total manufacturing cost equals to

= $780,000 + $670,000 + $640,000

= $2,090,000