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nternet can contain viruses. Unless you need to edit, it\'s safer to stay in Protected View Enable Editing Quick Study 14-8 Compute the total manufacturing cost for a manufacturer with the following information for the month. 32.400 53,750 12,000 8,000 6,200 3,500 2,200 Direct materials used sa Salesperson commissions Indirect materials Total Manufacturing Cost is Computed as ect materials used in production Direct labor used in production Factory overhead used in production Total manufacturing costs Quick Study 14-10

Solution

Solution: Total Manufacturing Cost is Computed as Direct materials used in production 53,750 Direct labor used in production 12,000 Factory overhead used in production 12,750 Total manufacturing costs 78,500 Working Notes: Total Manufacturing Cost is Computed as Direct materials used in production 53,750 Direct labor used in production 12,000 Factory overhead used in production Factory supervisory salary 8,000 Depreciation expense of factory building 3,500 Indirect material 1,250 12,750 Total manufacturing costs 78,500 Notes: Manufacturing cost includes cost that are related to production of product. Hence, Salesperson commissions , Depreciation expense of delivery equipment are not included in manufacturing cost The indirect materials, Depreciation of factory buildings & Factory supervisor salary is included in the form of manufacturing OH cost as they are used in production of the product indirectly. Please feel free to ask if anything about above solution in comment section of the question.