Manufacturing overhead applied is added to direct labor incu

Manufacturing overhead applied is added to direct labor incurred and to what other equal total manufacturing costs for the period? A) Work in process B) Direct materials used. C) Raw materials purchased. D) Goods available for ?ale.

Solution

Question - 1

The Answer is “B. Direct Materials Used”

- Total manufacturing cost for a product is the aggregate amount of the costs incurred the manufacturing unit produce goods.

- Total manufacturing cost = Direct Materials + Direct Labors + Manufacturing Overhead

Question – 2

Raw materials Inventory Requisitioned = Beginning Raw materials Inventory + Raw materials purchase during the year – Raw materials at the end

= $2,000 + 305,000 – 2,500

= $304,500

Hence, The Answer is “C. $304,500”