Answer:
Manufacturing costs= $270,000
Explanation:
Giving the following information:
Beginning work in process inventory $ 90,000
Direct materials used 70,000
Actual overhead 110,000
Overhead applied 80,000
Cost of goods manufactured 160,000
Ending work in process 200,000
The manufacturing cost incurred for the period is the sum of direct labor, direct material, and allocated overhead.
We need to determine the direct labor costs:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
160,000= 90,000 + 70,000 + direct labor + 80,000 - 200,000
160,000 + 200,000= 240,000 + direct labor
120,000= direct labor
Now, we can calculate the manufacturing costs:
Manufacturing costs= direct material + direct labor + allocated overhead
Manufacturing costs= 70,000 + 120,000 + 80,000= $270,000
