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Using the information below for Laurels Company; determine the manufacturing costs added during the current year: Direct materials used $ 6,600 Direct labor 8,600 Total Factory overhead 6,700 Beginning work in process 4,600 Ending work in process 7,200 A) $18,400. B) $19,300. C) $24,500. D) $21,900. E) $15,200.

Respuesta :

Answer:

Option B) $19,300

Explanation:

Manufacturing Costs for the years are computed using the following formula

Manufacturing Costs = (Direct Materials + Direct Labor + Total Factory Overheads) +Beginning work in process - Ending work in process

Direct Materials                         $6,600  

Direct Labor                                 $8,600  

Total Factory Overheads         $6,700  

Direct Manufacturing Costs   $21,900  

 

Add: beginning work in process  $4,600  

Less: ending work in process  ($7,200)

 

Total Manufacturing Costs           $19,300  

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