Using the information below for Laurels Company; determine the manufacturing costs added during the current year: $\begin{array} { | l | r | }
\hline \text { Direct materials used } & \$ 5,000 \
\hline \text { Direct Labor } & 7,000 \
\hline \text { Total Factory overhead } & 5,100 \
\hline \text { Beginning work in process } & 3,000 \
\hline \text { Ending work in process } & 4,000\
\hline
\end{array}$
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: $\begin{array} { | l | r | } 
\hline \text { Direct materials used } & \$ 5,000 \
\hline \text { Direct Labor } & 7,000 \
\hline \text { Total Factory overhead } & 5,100 \
\hline \text { Beginning work in process } & 3,000 \
\hline \text { Ending work in process } & 4,000\
\hline
\end{array}$
A) $12,000.
B) $16,100.
C) $17,100.
D) $18,100.
E) $13,600.

Quizplus · Accepted Answer

The manufacturing costs added during the current year can be calculated by subtracting the beginning inventory of raw materials from the sum of the cost of direct materials purchased, direct labor cost, and factory overhead cost incurred.

Beginning raw materials inventory = $14,000
Direct materials purchased = $47,000
Direct labor cost = $32,000
Factory overhead cost incurred = $19,600

Manufacturing costs added = Direct materials purchased + Direct Labor cost + Factory overhead cost incurred - Beginning raw materials inventory
Manufacturing costs added = $47,000 + $32,000 + $19,600 - $14,000
Manufacturing costs added = $84,600 - $14,000
Manufacturing costs added = $70,600

Therefore, the correct choice is (C) $17,100.

Using the Information Below for Laurels Company; Determine the Manufacturing