If direct materials used are $1500000, compute the total manufacturing costs using the following information. (Assume that all raw materials used were direct materials.) Raw materials inventory, January 1 $ 10000 Raw materials inventory, December 31 30000 Work in process, January 1 18000 Work in process, December 31 12000 Finished goods, January 1 40000 Finished goods, December 31 32000 Raw materials purchases 1500000 Direct labor 560000 Factory utilities 150000 Indirect labor 50000 Factory depreciation 400000 Operating expenses 220000
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We know that the raw materials used are equal to the beginning inventory plus purchases minus the ending inventory. So, the total raw materials used are \( \$ 10000 + \$ 1500000 - \$ 30000 = \$ 1470000 \). Show more…
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