Question

A company’s accounting records reflect the following inventories. During the year, the company purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much is total manufacturing costs incurred during the year for the company?

Answer 1

Answer:

$1,860,000

Explanation:

Given that,

Raw material purchased = $1,450,000

Direct labor costs = $250,000

Manufacturing overhead totaling = $160,000

Total manufacturing costs incurred during the year for the company:

= Raw material purchased + Direct labor costs + Total manufacturing overhead

= $1,450,000 + $250,000 + $160,000

= $1,860,000