Question

In: Accounting

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

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

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

ekkarill92 answered 3 years ago

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