Question

In: Accounting

Compute the total manufacturing cost with the following information for the month. Direct materials used 53,750...

  1. 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

Solutions

Expert Solution

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

For any help please comment in the comment box

Note

Sales commision and depreciation of delivery equipment are part of selling expenses, but not of manufacturing cost


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