Assuming the cost of direct materials used is $1800000 compute the total manufacturing costs using the information below. $\begin{array}{lr}
\text { Raw materials inventory, January 1 } &\$ 30,000 \
\text { Raw materials inventory, December 31 } & 60,000 \
\text { Work in process, January 1 } & 27,000 \
\text { Work in process, December 31 } & 18,000 \
\text { Finished goods, January 1 } & 60,000 \
\text { Finished goods, December 31 } & 48,000 \
\text { Raw materials purchases } & 1,800,000 \
\text { Direct labor } & 890,000 \
\text { Factory utilities } & 225,000 \
\text { Indirect labor } & 75,000 \
\text { Factory depreciation } & 500,000 \
\text { Operating expenses } & 630,000
\end{array}$

Question

Quizplus · Accepted Answer

Total manufacturing costs = Direct materials used + Direct labor + Factory overheadDirect materials used = Raw materials purchases + Beginning raw materials inventory - Ending raw materials inventory= 1,800,000 + 30,000 - 60,000= 1,770,000Factory overhead = Indirect labor + Factory utilities + Factory depreciation= 75,000 + 225,000 + 500,000= 800,000Total manufacturing costs = 1,770,000 + 890,000 + 800,000= 3,460,000

Assuming the Cost of Direct Materials Used Is $1800000 Compute