Question Completion:
Current information for the Healey Company follows:
Beginning raw materials inventory $25,200
Raw material purchases 70,000
Ending raw materials inventory 26,600
Beginning work in process inventory 32,400
Ending work in process inventory 38,000
Direct labor 52,800
Total factory overhead 40,000
Answer:
Healey Company
Total manufacturing costs for the year are:
$155,800
Explanation:
a) Data and Calculations:
Beginning raw materials inventory $25,200
Raw material purchases 70,000
Ending raw materials inventory (26,600)
Cost of raw materials used $68,600
Beginning work in process inventory 32,400
Ending work in process inventory (38,000)
Direct labor 52,800
Total factory overhead 40,000
Total manufacturing costs $155,800
b) The total manufacturing costs are made up of costs of direct materials, direct labor, and factory overhead. These costs are incurred in the production process and can be traced to the units of product(s) being manufactured.
