Question

Turnbull Manufacturing Company reported the following year-end information: Beginning work in process inventory $ 35,000 Beginning raw materials inventory 20,000 Ending work in process inventory 40,000 Ending raw materials inventory 10,000 Raw materials purchased 560,000 Direct labor 180,000 Manufacturing overhead 150,000 How much is Turnbull Manufacturing’s total cost of work in process for the year? $885,000 $900,000 $895,000 $935,000

Answer 1

$935,000

Working:

a.
	Beginning Raw Material			a	20,000
	Material Purchased			b	5,60,000
	Ending Raw Material			c	10,000
	Raw Material Used			a+b-c	5,70,000
b.
	Beginning Work In Process					35,000
	Raw Material used				5,70,000
	Direct Labor				1,80,000
	Manufacturing Overhead				1,50,000
	Costs incurred during the year					9,00,000
	Total Manufacturing costs of work in process for the year					9,35,000