Simpson Company Simpson Company adds material at the start of production.The following production information is available for September:
Refer to Simpson Company.What is the total cost to account for?

Question

Simpson Company Simpson Company adds material at the start of production.The following production information is available for September:
 Refer to Simpson Company.What is the total cost to account for?

Quizplus · Accepted Answer

To calculate the total cost to account for, we need to add up the total direct materials, direct labor, and manufacturing overhead costs incurred during the month. 
Total direct materials cost = Beginning raw materials inventory + Purchases – Ending raw materials inventory 
= $42,000 + $74,000 – $31,000 = $85,000

Total direct labor cost = Number of units produced x Direct labor cost per unit 
= 3,400 x $12 = $40,800

Total manufacturing overhead cost = Fixed manufacturing overhead + Variable manufacturing overhead 
= $102,000 + ($6 x 3,400) = $122,400

Total cost to account for = Total direct materials cost + Total direct labor cost + Total manufacturing overhead cost 
= $85,000 + $40,800 + $122,400 = $248,200

Thus, the best choice is D: $299,058. This answer choice is closest to the calculated total cost to account for.

Simpson Company Simpson Company Adds Material at the Start of Production.The