Nester Company recorded the following data for 2012: Additional data:
If raw materials costing $65,000 were purchased during the year, the total manufacturing costs for 2012 would be:

Question

Nester Company recorded the following data for 2012:  Additional data:
 If raw materials costing $65,000 were purchased during the year, the total manufacturing costs for 2012 would be:

Quizplus · Accepted Answer

To calculate the total manufacturing costs, we need to add up the direct materials, direct labor, and manufacturing overhead.

From the given data: 
Direct materials used = Beginning raw materials inventory + Purchases - Ending raw materials inventory
Direct materials used = $36,000 + $65,000 - $46,800 = $54,200

Direct labor = $79,000 
Manufacturing overhead = $193,400

Total manufacturing costs = Direct materials + Direct labor + Manufacturing overhead 
Total manufacturing costs = $54,200 + $79,000 + $193,400 = $326,600

Therefore, the closest answer is C) $327,600.

Nester Company Recorded the Following Data for 2012: Additional