Use the information below to answer the following question(s).Country Heather manufactures flowerpots.It expects to sell 40,000 flowerpots in 2019.The company had enough beginning inventory of direct materials to produce 48,000 units.Beginning inventory of finished units totalled 4,000 with a target ending inventory of 5,000 units.The flowerpots sell for $6.00 and the company keeps no work-in-process inventory.Direct materials costs for each flowerpot total $2.00 while direct labour is $1.00.Factory overhead is $0.40 per flowerpot.
-What will be Country Heather's total costs incurred for direct materials, direct manufacturing labour, and manufacturing overhead, respectively, for 2019?

Question

Quizplus · Accepted Answer

Direct materials cost per unit = $2.00

Total cost of direct materials = Direct materials cost per unit x Number of units = $2.00 x 40,000 = $80,000

Direct manufacturing labor cost per unit = $1.00

Total cost of direct manufacturing labor = Direct manufacturing labor cost per unit x Number of units = $1.00 x 40,000 = $40,000

Manufacturing overhead cost per unit = $0.40

Total manufacturing overhead cost = Manufacturing overhead cost per unit x Number of units = $0.40 x 40,000 = $16,000

Therefore, the total costs incurred for direct materials, direct manufacturing labor, and manufacturing overhead will be $82,000, $41,000, and $16,400 respectively.

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