Question

Compute the total manufacturing cost for a manufacturer with the following information for the month.

Raw materials purchased . . . . . . . . . . . . . . . \(32,400

Direct materials used . . . . . . . . . . . . . . . . . . 53,750

Direct labor used . . . . . . . . . . . . . . . . . . . . . . 12,000

Factory supervisor salary . . . . . . . . . . . . . . . 8,000

Salesperson commissions . . . . . . . . . . . . . . . . . . . . . . . . \)6,200

Depreciation expense—Factory building . . . . . . . . . . . . 3,500

Depreciation expense—Delivery equipment . . . . . . . . . 2,200

Indirect materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250

Short answer

The total manufacturing costs equal $78,500.

Step-by-step solution

Explanation of manufacturing costs

Manufacturing costs refer to the total costs incurred by the entity in manufacturing or producing the product. It includes direct material, direct labor and factory overhead.

Schedule of cost of goods manufactured

Particulars		Amount
Direct materials used		$53,750
Direct labors used		12,000
Factory overhead
Indirect materials	$1,250
Factory supervisor salary	8,000
Depreciation expense—Factory building	3,500
Total factory overhead		12,750
Total manufacturing costs		$78,500