Chmelar Manufacturing Company developed the following dа ta: Beginning work in process inventory $ 80,000 Direct materials used 480,000 Actual overhead 560,000 Overhead applied 540,000 Cost of goods manufactured 1,280,000 Ending work in process 60,000 How much are total manufacturing costs for the period? Select one: a. $1,580,000 b. $1,260,000 Correct c. $1,100,000 d. $1,220,000

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Business

Townsend

23 June, 22:04

Chmelar Manufacturing Company developed the following dа ta: Beginning work in process inventory $ 80,000 Direct materials used 480,000 Actual overhead 560,000 Overhead applied 540,000 Cost of goods manufactured 1,280,000 Ending work in process 60,000 How much are total manufacturing costs for the period? Select one: a. $1,580,000 b. $1,260,000 Correct c. $1,100,000 d. $1,220,000

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Carlo Costa · Answer 1

b. $1,260,000

Explanation:

The computation of the total manufacturing cost is shown below:

= Cost of goods manufactured + ending work in process - beginning work in progress

= $1,280,000 + $60,000 - $80,000

= $1,260,000

We simply add the ending work in progress and deduct the beginning work in progress to the cost of goods manufactured so that the accurate amount can come