Assuming the cost of direct materials used is $1,800,000, compute the total manufacturing costs using the information below. $\begin{array}{lll}
\text { Raw mate rials inventory, January 1 } & 30,000 \
\text { Raw materials inventory, December 31 } & 60,000 \
\text { Work in process, January 1 } & 27,000\
\text { Work in process, December } 31 & 18,000 \
\text { Finished goods, January 1 } & 60,000 \
\text { Finished goods, December } 31 & 48,000 \
\text { Raw materials purchases } & 1,800,000\
\text { Direct labor } & 890,000 \
\text { Factory utilities } & 225,000 \
\text { Indirect labor } & 75,000 \
\text { Factory depreciation } & 500,000 \
\text { Operating expenses } & 630,000
\end{array}$

Question

Quizplus · Accepted Answer

Total manufacturing costs include direct materials, direct labor, and manufacturing overhead (factory utilities, indirect labor, and factory depreciation). Direct materials used are $1,800,000, direct labor is $890,000, and manufacturing overhead is $225,000 + $75,000 + $500,000 = $800,000. Therefore, total manufacturing costs = $1,800,000 + $890,000 + $800,000 = $3,490,000.

Assuming the Cost of Direct Materials Used Is $1,800,000, Compute