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    Carly Manufacturing Company's accounting records reflect the following amounts:?

    Carly Manufacturing Company's accounting records reflect the following amounts: Raw Materials Inventory, Jan 1, 2008 - $260,000 Raw Materials Inventory, Dec 31, 2008 - $310,000 Work in Process Inventory, Jan 1, 2008 - $160,000 Work in Process Inventory , Dec 31, 2008 - $300,000 Finished Goods Inventory, Jan 1, 2008 - $150,000 Finished Goods Inventory, Dec 31, 2008 - $190,000 Raw materials purchased during 2008 - $500,000 Direct labor costs during 2008 - $600,000 Manufacturing overhead incurred during 2008 - $480,000 Carly Manufacturing Company's total manufacturing costs incurred in 2008 is ?
    a few seconds ago 1 Answer

    Best Answer

    Total manufacturing costs = Direct labor + Direct materials + Factory Overhead Direct materials used: Raw Materials Inventory, Jan 1, 2008 - $260,000 + Raw materials purchased during 2008 - $500,000 - Raw Materials Inventory, Dec 31, 2008 - ($310,000) = $450,000 Direct labor costs during 2008 - $600,000 Manufacturing overhead incurred during 2008 - $480,000 So total manufacturing costs = $1,530,000 Cost of goods manufactured = Total manufacturing costs + opening WIP - ending WIP = $1,530,000 + $160,000 - $300,000 = $1,390,000
    a few seconds ago

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