Homework SourseThe following data have been taken from the accounting recor
The following data have been taken from the accounting records of K Corporation for the year.
What are the total manufacturing costs for the year?
| Sales | $950 |
| Direct materials used | 200 |
| Direct labor | 180 |
| Manufacturing overhead | 300 |
| Administrative expenses | 100 |
| Selling expenses | 140 |
| Work in process inventory, beginning | 70 |
| Work in process inventory, ending | 40 |
| Finished goods inventory, beginning | 100 |
| Finished goods inventory, ending | 80 |
Solution
Total manufacturing costs are 680 for the year.
| Particulars | Amount | Amount |
| Total materials used | 200 | |
| Direct labor | 180 | |
| Manufacturing overhead | 300 | |
| Total manufacturing costs | 680 | |
| Add: beginning inventory | 70 | |
| Less: closing inventory | 40 | |
| Cost of goods manufactured | 710 |
