Chmelar Manufacturing Company developed the following data: How much are total manufacturing costs for the period?

Question

Chmelar Manufacturing Company developed the following data:  How much are total manufacturing costs for the period?

Quizplus · Accepted Answer

The total manufacturing costs for the period can be calculated by adding the beginning work in process inventory, total manufacturing costs incurred during the period, and subtracting the ending work in process inventory. Using the given data, the calculation would be: 
Beginning work in process inventory: $150,000 
Direct materials used: $650,000 
Direct labor: $400,000 
Factory overhead: $450,000 
Total manufacturing costs: $1,500,000 
Ending work in process inventory: $555,000

Total manufacturing costs = Beginning WIP + DM + DL + FO - Ending WIP 
Total manufacturing costs = $150,000 + $650,000 + $400,000 + $450,000 - $555,000 = $1,095,000

Therefore, the answer is B ($945,000).

Chmelar Manufacturing Company Developed the Following Data: How Much