Ogleby Inc.'s accounting records reflect the following inventories: $\begin{array}{lcc}
& \text { Dec. 31,2021 } & \text { Dec. 31,2022 } \
\hline \text { Raw materials inventory } & \$ 120,000 & \$ 96,000 \
\text { Winished qoods inventory } & 156,000 & 174,000 \
\text { Finocess inventory } & 150,000 & 138,000
\end{array}$ During 2022 Ogleby purchased $980000 of raw materials incurred direct labor costs of $175000 and incurred manufacturing overhead totaling $224000. How much is total manufacturing costs incurred during 2022 for Ogleby?

Question

Ogleby Inc.'s accounting records reflect the following inventories: $\begin{array}{lcc} 
& \text { Dec. 31,2021 } & \text { Dec. 31,2022 } \
\hline \text { Raw materials inventory } & \$ 120,000 & \$ 96,000 \
\text { Winished qoods inventory } & 156,000 & 174,000 \
\text { Finocess inventory } & 150,000 & 138,000
\end{array}$ During 2022 Ogleby purchased $980000 of raw materials incurred direct labor costs of $175000 and incurred manufacturing overhead totaling $224000. How much is total manufacturing costs incurred during 2022 for Ogleby?

Quizplus · Accepted Answer

Total manufacturing costs include raw materials used, direct labor, and manufacturing overhead. Raw materials used = $120,000 (beginning) + $980,000 (purchased) - $96,000 (ending) = $1,004,000. Total manufacturing costs = $1,004,000 (raw materials used) + $175,000 (direct labor) + $224,000 (overhead) = $1,403,000.

Ogleby Inc During 2022 Ogleby Purchased $980000 of Raw Materials Incurred Direct