(11 points) Jewelry Company\'s accounting records reflect the following inventor

Question

(11 points) Jewelry Company's accounting records reflect the following inventories: Dec. 31, 2014 Dec. 31, 2013 Raw materials inventory $599,000 $531,000 Work in process inventory 623,000 570,000 Finished goods inventory 374,000 323,000 During 2014, $955,000 of raw materials were purchased, direct labor costs amounted to $804,000, and manufacturing overhead incurred was $1,167,000. Jewelry Company's total manufacturing costs incurred in 2014 amounted to

? Select one: a. $2,858,000. b. $2,994,000. c. $2,873,000. d. $2,926,000.

(11 points) Jewelry Company's accounting records reflect the following inventories $599,000 623,000 374,000 Dec 31 2013 $531,000 570,000 323,000 Raw materials inventory Work in process inventory Finished goods inventory During 2014, $955,000 of raw materials were purchased, direct labor costs amounted to $804,000, and manufacturing overhead incurred was $1,167,000. Jewelry Company's total manufacturing costs incurred in 2014 amounted to Select one: a. $2,858,000 b. $2,994,000 c. $2,873,000 O d. $2,926,000 d.$2,926,000

Explanation / Answer

Total Manufacturing COst = Cost of Direct Material +Direct labour + Manufacturing Overhead

Cost of Direct MAterial = Beginning Inventory+Purchases - Ending Inventory = 531000+955000-599000 =$ 887000

Direct LAbour = $804000

Manufacturing Ovrhead = $1167000

Total MAnufacturing cost = 887000+804000+1167000 = $2858000

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