Dolan Company's accounting records reflect the following inventories: $$\begin{array} { l c c }
& \text { Dec. 31, 2017 } & \text { Dec. 31, 2016 } \
\text { Raw materials inventory } & \$ 310,000 & \$ 260,000 \
\text { Work in process inventory } & 300,000 & 160,000 \
\text { Finished goods inventory } & 190,000 & 150,000
\end{array}$$ During 2017, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000. Dolan Company's total manufacturing costs incurred in 2017 amounted to
A)$2,060,000.
B)$2,020,000.
C)$1,920,000.
D)$2,110,000.

Question

Dolan Company's accounting records reflect the following inventories: $$\begin{array} { l c c } 
& \text { Dec. 31, 2017 } & \text { Dec. 31, 2016 } \
\text { Raw materials inventory } & \$ 310,000 & \$ 260,000 \
\text { Work in process inventory } & 300,000 & 160,000 \
\text { Finished goods inventory } & 190,000 & 150,000
\end{array}$$ During 2017, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000. Dolan Company's total manufacturing costs incurred in 2017 amounted to
A)$2,060,000.
B)$2,020,000.
C)$1,920,000.
D)$2,110,000.

Quizplus · Accepted Answer

Total manufacturing costs incurred = Raw materials purchased + Direct labor costs + Manufacturing overhead incurred= $800,000 + $670,000 + $640,000= $2,060,000

Dolan Company's Accounting Records Reflect the Following Inventories During 2017, $800,000 of Raw Materials Were Purchased, Direct Labor