The component illustrated in the following figure is to be m

The component illustrated in the following figure is to be manufactured by injection molding unfilled PBT. Estimate the cost of manufacture on a production rate of 20,000 per year.

Solution

The formula for the cost of goods manufactured is the costs of: direct materials used + direct labor used + manufacturing overhead assigned = the manufacturing costs incurred in the current accounting period + beginning work-in-process inventory - ending work-in-process inventory.