Using the information below for Laurels Company;determine the manufacturing costs added during the current year:
A)$12,000.
B)$16,100.
C)$17,100.
D)$18,100.
E)$13,600.

Question

Using the information below for Laurels Company;determine the manufacturing costs added during the current year: 
A)$12,000. 
B)$16,100. 
C)$17,100. 
D)$18,100. 
E)$13,600.

Quizplus · Accepted Answer

To determine the manufacturing costs added during the current year, we need to look at the change in the total manufacturing costs from the beginning of the year to the end of the year.

Beginning WIP inventory = $6,000 
Direct materials purchased during the year = $14,000 
Direct labor during the year = $10,000 
Overhead during the year = ($8,000 + $2,500 + $2,400) = $13,900 
Ending WIP inventory = $4,800

Total manufacturing costs for the year = Beginning WIP inventory + Direct materials + Direct labor + Overhead - Ending WIP inventory 
= $6,000 + $14,000 + $10,000 + $13,900 - $4,800 
= $38,100

Therefore, the manufacturing costs added during the current year is $38,100 - $21,000 (total costs from previous year) = $17,100.

Using the Information Below for Laurels Company;determine the Manufacturing Costs