Dolan Manufacturing Company's accounting records reflect the following inventories: During 2010, $400,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.
Dolan Manufacturing Company's total manufacturing costs incurred in 2010 amounted to

Question

Dolan Manufacturing Company's accounting records reflect the following inventories:  During 2010, $400,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.
Dolan Manufacturing Company's total manufacturing costs incurred in 2010 amounted to

Quizplus · Accepted Answer

Total manufacturing costs include direct materials, direct labor, and manufacturing overhead. Therefore, the total manufacturing costs for Dolan Manufacturing Company in 2010 are $400,000 (raw materials) + $500,000 (direct labor) + $480,000 (manufacturing overhead) = $1,380,000. Therefore, the correct answer is (A) $1,330,000.

Dolan Manufacturing Company's Accounting Records Reflect the Following Inventories