Asked by shamimi samsudin on May 10, 2024
Verified
Use the cost information below for Laurels Company to determine the manufacturing costs added during the current year:
A) $12,000.
B) $16,100.
C) $17,100.
D) $18,100.
E) $13,600.
Manufacturing Costs
Costs specifically associated with the creation of products, encompassing materials, workforce, and indirect expenses.
Current Year
The present calendar or fiscal year in which business operations, transactions, or financial statements are being considered or reported.
- Outline the three main cost categories in manufacturing processes.
- Learn the method for computing the cost of goods manufactured.
Verified Answer
CJ
Claire JonesMay 15, 2024
Final Answer :
C
Explanation :
The manufacturing costs include direct materials used, direct labor and overhead costs. From the cost information provided, we can see that the direct materials used during the current year is $6,000, direct labor costs is $5,500 and overhead costs is $5,600. Therefore, the total manufacturing costs added during the current year is $6,000 + $5,500 + $5,600 = $17,100. Hence, the correct answer is (C) $17,100.
Learning Objectives
- Outline the three main cost categories in manufacturing processes.
- Learn the method for computing the cost of goods manufactured.
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