Using the information below for Laurels Company; determine the manufacturing costs added during the current year: Direct materials used $ 6,600 Direct labor 8,600 Total Factory overhead 6,700 Beginning work in process 4,600 Ending work in process 7,200 A) $18,400. B) $19,300. C) $24,500. D) $21,900. E) $15,200.

Question

Business

Rodney Moss

21 October, 13:44

Using the information below for Laurels Company; determine the manufacturing costs added during the current year: Direct materials used $ 6,600 Direct labor 8,600 Total Factory overhead 6,700 Beginning work in process 4,600 Ending work in process 7,200 A) $18,400. B) $19,300. C) $24,500. D) $21,900. E) $15,200.

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Liberty Schaefer · Answer 1

Option B) $19,300

Explanation:

Manufacturing Costs for the years are computed using the following formula

Manufacturing Costs = (Direct Materials + Direct Labor + Total Factory Overheads) + Beginning work in process - Ending work in process

Direct Materials $6,600

Direct Labor $8,600

Total Factory Overheads $6,700

Direct Manufacturing Costs $21,900

Add: beginning work in process $4,600

Less: ending work in process ($7,200)

Total Manufacturing Costs $19,300