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12 April, 19:46

During the year, direct labor costs of $30,000 were incurred, manufacturing overhead totaled $42,000, materials purchased were $27,000, and selling and administrative costs were $22,000. Champagne sold 25,000 units of product during the year at a sales price of $5.00 per unit. What were the total manufacturing costs for the year assuming $2 comma 653 of indirect materials were used during the period?

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  1. 12 April, 20:19
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    Total Manufacturing Cost = $96,347

    Explanation:

    Total manufacturing cost include all the costs related directly to the production, and does not include any indirect costs, or cost of selling and administration.

    Thus, for the information provided we have,

    Since not provided assumed no opening and closing inventory.

    Total manufacturing cost =

    Direct Labor Cost $30,000

    Add: Manufacturing Overhead $42,000

    Add: Materials Purchased $27,000

    Less: Indirect Material included = ($2,653)

    Total Manufacturing Cost = $96,347
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