Question

Shonda Corporation Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2017 (in thousands) Direct materials: Beginning inventory, Jan. 1, 2017 $135,000 Purchases of direct materials 260,000 Cost of direct materials available for use 395,000 Ending inventory, Dec. 31, 2017 72,000 Direct materials used $323,000 Direct manufacturing labor 210,000 Manufacturing overhead costs: Indirect manufacturing labor $95,000 Plant utilities 19,000 Depreciation—plant, building, and equipment 43,000 Plant insurance 2,000 Repairs and maintenance—plant 17,000 Equipment leasing costs 60,000 Total manufacturing overhead costs 236,000 Manufacturing costs incurred during 2017 Total manufacturing costs to account for Cost of goods manufactured

Answer 1

Answer:

Manufacturing costs incurred during 2017= $769,000

Explanation:

Giving the following information:

Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2017 (in thousands):

Direct materials:

Beginning inventory, Jan. 1, 2017= $135,000

Purchases of direct materials= 260,000

Cost of direct materials available for use= 395,000

Ending inventory, Dec. 31, 2017= 72,000

Direct materials used $323,000

Direct manufacturing labor 210,000

Manufacturing overhead costs:

Indirect manufacturing labor= $95,000

Plant utilities= 19,000

Depreciation—plant, building, and equipment= 43,000

Plant insurance= 2,000

Repairs and maintenance—plant= 17,000

Equipment leasing costs= 60,000

Total manufacturing overhead costs 236,000

Manufacturing costs incurred during 2017= direct materials used + direct labor + manufacturin overhead= 323000 + 210000 + 236000= $769,000