Assuming that the direct materials used are $1,700,000, compute the total manufacturing costs using the following information. $\begin{array}{lll}
\text { Raw materials inventory, January 1 } & 20,000 \
\text { Raw materials inventory, December } 31 & 40,000 \
\text { Work in process, January 1 } & 18,000 \
\text { Work in process, December 31 } & 12,000 \
\text { Finished goods, January 1 } & 40,000 \
\text { Finished goods, December 31 } & 32,000\
\text { Raw materials purchases } & 1,700,000 \
\text { Direct labor } & 760,000 \
\text { Factory utilities } & 150,000 \
\text { Indirect labor } & 50,000 \
\text { Factory depreciation } & 400,000 \
\text { Operating expenses } & 420,000
\end{array}$
A)$3,060,000.
B)$3,066,000.
C)$2,860,000.
D)$3,480,000.

Question

Quizplus · Accepted Answer

The total manufacturing costs are calculated as follows:Direct materials used = $1,700,000Beginning raw materials inventory = $20,000Ending raw materials inventory = $40,000Raw materials purchases = $1,700,000Total raw materials available = $1,740,000Raw materials used = $1,740,000 - $40,000 = $1,700,000Beginning work in process inventory = $18,000Ending work in process inventory = $12,000Direct labor = $760,000Factory utilities = $150,000Indirect labor = $50,000Factory depreciation = $400,000Total manufacturing costs = $1,700,000 + $18,000 - $12,000 + $760,000 + $150,000 + $50,000 + $400,000 = $3,066,000

Assuming That the Direct Materials Used Are $1,700,000, Compute the Total