Hayes Manufacturing Company's accounting records reflect the following inventories Dec. 31, 2018 Dec. 31, 2017 Raw materials inventory $240,000 $200,000 Work in process inventory 190, 000 1 80,000 Finished goods inventory 150,000 140,000 During 2018, $500,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $550,000. Hayes Manufacturing Company's total manufacturing costs incurred in 2018 amounted to Select one: a. $1,510,000. b. $1,750,000 c. $1,550,000. d. $1,500,000

Question

Business

Britney Lawson

8 January, 14:53

Hayes Manufacturing Company's accounting records reflect the following inventories Dec. 31, 2018 Dec. 31, 2017 Raw materials inventory $240,000 $200,000 Work in process inventory 190, 000 1 80,000 Finished goods inventory 150,000 140,000 During 2018, $500,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $550,000. Hayes Manufacturing Company's total manufacturing costs incurred in 2018 amounted to Select one: a. $1,510,000. b. $1,750,000 c. $1,550,000. d. $1,500,000

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Answers (1)

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Genevieve Werner · Answer 1

a. $1,510,000

Explanation:

The computation of the total manufacturing costs is shown below:

= Direct material cost + Direct labor cost + manufacturing overhead cost

where,

Direct material cost = Opening inventory + purchase made - ending inventory

= $200,000 + $500,000 - $240,000

= $460,000

And the other items values remain the same

So, the value would be equal to

= $460,000 + $500,000 + $550,000

= $1,510,000

We assume that the data is given 2018 and 2017