Finance Questions? Ask a Financial Expert for Answers ASAP
Hi and welcome to Just Answer! I'm happy to help answer your Finance questions. Feel free to interject at any time if you need clarification. Give me a few minutes and I'll get you the answer to this.
You have # XXXXX and #c - is there an #a? Just want to make sure I'm answering all parts for you.
Here the answers to B & C. Let me know if you need anything else:
Direct Materials Cost = Materials purchased less materials inventory
610,000 - 45,000 = 565,000
Direct Labor Cost: Total Manufacturing Costs Less Direct materials Cost less Factory Overhead
Factory Overhead for this problem is Indirect labor + Indirect Materials + Other Factory Overhead
1,325,000 - 880,000 - 110,000 - 45,000 - 20,000 = 270,000
There is something wrong with letter B...because thats not a choice with that value
The answer is C, 520,000. I failed to take into account indirect materials.
So the answer is arrived at Materials Purchased less direct materials less indirect materials.