Inventory balances for the Jameson Company in October 2018 are as follows: $$\begin{array} { l c c }
& \text { October } 1,2018 & \text { October } 31,2018 \
\text { Raw materials } & \$ 27,000 & \$ 21,000 \
\text { Work in process } & 48,000 & 37,200 \
\text { Finished goods } & 108,000 & 90,000
\end{array}$$
During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively.
What are the total manufacturing costs added to production in the period?
A)$186,000
B)$180,000
C)$144,000
D)$174,200

Question

Inventory balances for the Jameson Company in October 2018 are as follows: $$\begin{array} { l c c } 
& \text { October } 1,2018 & \text { October } 31,2018 \
\text { Raw materials } & \$ 27,000 & \$ 21,000 \
\text { Work in process } & 48,000 & 37,200 \
\text { Finished goods } & 108,000 & 90,000
\end{array}$$
During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively.
What are the total manufacturing costs added to production in the period?
A)$186,000
B)$180,000
C)$144,000
D)$174,200

Quizplus · Accepted Answer

Total manufacturing costs added to production in the period = Direct materials used + Direct labor + Factory overheadDirect materials used = Beginning raw materials inventory + Purchases of direct materials - Ending raw materials inventory= $27,000 + $36,000 - $21,000= $42,000Total manufacturing costs added to production in the period = $42,000 + $60,000 + $84,000= $186,000

Inventory Balances for the Jameson Company in October 2018 Are