In: Accounting
Alcatraz Corp has the following information: |
1-Jan | 31-Dec |
Raw materials | 20,000 | 30,000 |
Work in process | 15,000 | 18,000 |
Finished goods | 30,000 | 20,000 |
Additional information | ||
Raw material purchases | 100,000 | |
Direct labor | 25,000 | |
Manufacturing overhead | 80,000 | |
Indirect materials | 0 |
Compute the current manufacturing costs.
$245,000 |
||
$255,000 |
||
$68,000 |
||
$65,000 |
According to the information provided , the current manufacturing cost will be:
Manufacturing Cost = Direct Materials + Direct Labor + Manufacturing Overhead
Begining Raw Material Inventoy | 20,000 |
Add: Raw material purchase | 100,000 |
Direct materials available for use | 120,000 |
Ending raw material inventory | (30,000) |
Direct Material used in production | 90,000 |
Add: Direct Labor | 25,000 |
Prime Cost | 115,000 |
Add: Manufacturing Overhead | 80,000 |
CURRENT MANUFACTURING COST | $195,000 |
[NOTE: The Current Manufacturing Cost will be $195,000 according to the information and figures provided , but is not matching any of the options provided . Kindly check the figures and options once again. The solution process will be like this only. There can be an error in the figures provided,You can ask me anything in the comment section for more clarification. Hope the answer will solve your problem. Kindly rate . Thank You:) ]