Champagne of the South Inc a manufacturer of bottled sweet t

Champagne of the South, Inc., a manufacturer of bottled sweet tea, had the following beginning and ending inventories for the year ended December 31, 2013 January 1 December 31 Raw Materials Inventory* $10,000 $18,593 $21,000 $17,000 $16,500 Finished Goods Inventory Raw Materials Inventory consists of both direct material and indirect material 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 $2,032 of indirect materials were used during the period? The total manufacturing costs for the year were $

Solution

Solution:

Calculation of the Total Manufacturing Costs for the Year:

Therefore, the Total manufacturing Costs for the Year were is $97,968.

Beginning Raw Materials	$10,000
Add: Purchases	$27,000
Less: Ending Raw Materials	($9,000)
Raw Materials Used	$28,000
Less: Indirect Materials Used	($2,032)
Direct Materials Used	$25,968
Add: Direct Labor	$30,000
Add: Manufacturing Overhead	$42,000
Total Manufacturing Costs	$97,968