In: Accounting
Compute the total manufacturing cost with the following information for the month.
Direct materials used |
53,750 |
Direct labor used |
12,000 |
Factory supervisor salary |
8,000 |
Salesperson commissions |
6,200 |
Depreciation expense—Factory building |
3,500 |
Depreciation expense—Delivery equipment |
2,200 |
Indirect materials |
1,250 |
Total manufacturing costs |
The correct answer
Total Manufacturing costs = $ 78500
Calculation
Total Manufacturing Costs
= Direct Material + Direct Labour + Manufacturing Overheads
= Direct Material + Direct Labour + (factory supervisor salary + depreciation factory building + indirect material)
= 53750 + 12000 + ( 8000 + 3500 + 1250)
= 53750 + 12000+12750
= $ 78500
Thus the correct answer is $ 78500
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Note
Sales commision and depreciation of delivery equipment are part of selling expenses, but not of manufacturing cost