Benson Inc.'s accounting records reflect the following inventories: $$\begin{array} { l c c }
& \text { Dec. 31,2012 } & \text { Dec. 31,2013 } \
\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \
\text { Work in process inventory } & 104,000 & 116,000 \
\text { Finished goods inventory } & 100,000 & 92,000
\end{array}$$ During 2013, Benson purchased $1,160,000 of raw materials, incurred direct labor costs of $200,000, and incurred manufacturing overhead totaling $128,000.
- How much is total manufacturing costs incurred during 2013 for Benson?
A)$1,392,000
B)$1,404,000
C)$1,388,000
D)$1,400,000

Question

Benson Inc.'s accounting records reflect the following inventories: $$\begin{array} { l c c } 
& \text { Dec. 31,2012 } & \text { Dec. 31,2013 } \
\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \
\text { Work in process inventory } & 104,000 & 116,000 \
\text { Finished goods inventory } & 100,000 & 92,000
\end{array}$$ During 2013, Benson purchased $1,160,000 of raw materials, incurred direct labor costs of $200,000, and incurred manufacturing overhead totaling $128,000. 
- How much is total manufacturing costs incurred during 2013 for Benson?
A)$1,392,000
B)$1,404,000
C)$1,388,000
D)$1,400,000

Quizplus · Accepted Answer

Total manufacturing costs include raw materials used, direct labor, and manufacturing overhead. Raw materials used = Beginning raw materials + Purchases - Ending raw materials = $80,000 + $1,160,000 - $64,000 = $1,176,000. Total manufacturing costs = Raw materials used + Direct labor + Manufacturing overhead = $1,176,000 + $200,000 + $128,000 = $1,504,000. However, the correct choice seems to be based on a different calculation or error in the options provided.

Benson Inc During 2013, Benson Purchased $1,160,000 of Raw Materials, Incurred Direct