Question

During 2020, $830000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurred was $640000. Waterway Industries's total manufacturing costs incurred in 2020 amounted to

Answer 1

Answer:

Waterway Industries's total manufacturing costs incurred in 2020 amounted to $2,140,000

Explanation:

The computation of the total manufacturing cost is shown below:

= Raw material + Direct labor cost + Manufactured overhead cost

= $830,000 + $670,000 + $640,000

= $2,140,000

Thus, the total manufacturing cost is comprised of direct raw material, direct labor cost, and the manufacturing overhead cost. That's why we add these three costs.