Home › US CMA Part 1 › Management Accounting › Managerial Accounting Concepts › Direct materials used are $57,000, direct labor …
Direct materials used are $57,000, direct labor is $40,000 and factory overhead is $24,000 for June, and work in process opened at $42,000. What are total manufacturing costs to account for?
A$163,000
B$121,000
C$132,000
D$145,000
Answer & Solution
Correct answer: A. $163,000
1. The three production costs added during June are direct materials $57,000, direct labor $40,000 and factory overhead $24,000.
2. Total manufacturing costs in June are $57,000 plus $40,000 plus $24,000, which is $121,000.
3. Work in process already on hand at June 1 was $42,000.
4. Total manufacturing costs to account for are $121,000 plus $42,000, which is $163,000.
5. $121,000 is only the costs added in June and ignores the opening work in process.
_Source: Jonick, Principles of Managerial Accounting (UNG Press, CC BY-SA 4.0), section 1.3.1 Financial Reporting for a Manufacturer_
Related questions
Capital investment analysis, which evaluates proposed investments in property, plant and eHow does activity-based costing relate to job order costing and process costing?A manufacturer reports materials of $18,000, work in process of $31,000 and finished goodsWhy is a separate statement of cost of goods sold prepared rather than showing the full caSales are $300,000 and cost of goods sold is $140,000. What does the $160,000 difference rFinished goods were $34,000 on June 1 and $26,000 on June 30, and the cost of goods manufaWork in process was $42,000 on June 1, manufacturing costs added in June were $121,000 andMaterials inventory was $16,000 on June 1, purchases during June were $59,000 and the June