The following account balances has been extracted from Jimbob Co.'s general ledger: $$\begin{array} { | l | r | }
\hline \text { Direct materials used in production } & \$ 200,000 \
\hline \text { Depreciation factory building } & \$ 10,000 \
\hline \text { Depreciation factory equipment } & \$ 50,000 \
\hline \text { Depreciation sales department automobiles } & \$ 10,000 \
\hline \text { Direct wages factory employees } & \$ 200,000 \
\hline \text { Sales department salaries and commissions } & \$ 150,000 \
\hline \text { Factory manager's salary } & \$ 50,000 \
\hline \text { Utility costs factory } & \$ 50,000 \
\hline \text { Utility costs sales office } & \$ 20,000 \
\hline
\end{array}$$ What was the total of manufacturing costs?
A)$510,000.
B)$740,000.
C)$560,000.
D)$400,000.

Question

The following account balances has been extracted from Jimbob Co.'s general ledger: $$\begin{array} { | l | r | } 
\hline \text { Direct materials used in production } & \$ 200,000 \
\hline \text { Depreciation factory building } & \$ 10,000 \
\hline \text { Depreciation factory equipment } & \$ 50,000 \
\hline \text { Depreciation sales department automobiles } & \$ 10,000 \
\hline \text { Direct wages factory employees } & \$ 200,000 \
\hline \text { Sales department salaries and commissions } & \$ 150,000 \
\hline \text { Factory manager's salary } & \$ 50,000 \
\hline \text { Utility costs factory } & \$ 50,000 \
\hline \text { Utility costs sales office } & \$ 20,000 \
\hline
\end{array}$$ What was the total of manufacturing costs?
A)$510,000.
B)$740,000.
C)$560,000.
D)$400,000.

Quizplus · Accepted Answer

Manufacturing costs include direct materials, direct labor, and manufacturing overhead. In this case, direct materials used in production ($200,000), direct wages for factory employees ($200,000), depreciation on factory building ($10,000), depreciation on factory equipment ($50,000), factory manager's salary ($50,000), and utility costs for the factory ($50,000) are included. Adding these together gives $200,000 + $200,000 + $10,000 + $50,000 + $50,000 + $50,000 = $560,000.

The Following Account Balances Has Been Extracted from Jimbob Co