Lots of stuff company reports the following data for its first year of operation. cost of goods manufactured $455,000 work in process inventory, beginning 0 work in process inventory, ending 140,000 direct materials used 110,000 manufacturing overhead 185,000 finished goods inventory, beginning 0 finished goods inventory, ending 90,000. what are the total manufacturing costs?

Total Manufacturing cost $595,000

Explanation:                                     $

Cost of Goods manufactured    455,000

Add: WIP Ending                         140,000

Less: WIP beginning                        0        

Total Manufacturing Cost          595,000

$595,000

Explanation: Total manufacturing costs is the total cost incurred by an organisation to make products during a certain reporting period. The products are pocessed from raw materials to the stage where they can then be sold. Usually in order to calculate total manufacturing costs you need to take direct materials and add direct labour and manufacturing overheads together. However in this case direct labour isn't given.

Another method of calculating this is by working backwords using the cost of goods manufactured. The formula for this is:

Cost of goods manufactured = Total manufacturing costs + beginning work in process - closing work in process. The aim of working backwards is to manipulate this formula so that total manufctured costs is found. This can be deduced as follows:

Total manufacturing costs = cost of goods manufactured - begininning work in process + closing work in process.

∴ Total manufacturing costs = $455,000 - $0 + $140,000

= $595,000

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