Asked by damian sanchez on Apr 30, 2024
Verified
The following account balances has been extracted from Jimbob Co.'s general ledger: Direct materials used in production $200,000 Depreciation factory building $10,000 Depreciation factory equipment $50,000 Depreciation sales department automobiles $10,000 Direct wages factory employees $200,000 Sales department salaries and commissions $150,000 Factory manager’s salary $50,000 Utility costs factory $50,000 Utility costs sales office $20,000\begin{array} { | l | r | } \hline \text { Direct materials used in production } & \$ 200,000 \\\hline \text { Depreciation factory building } & \$ 10,000 \\\hline \text { Depreciation factory equipment } & \$ 50,000 \\\hline \text { Depreciation sales department automobiles } & \$ 10,000 \\\hline \text { Direct wages factory employees } & \$ 200,000 \\\hline \text { Sales department salaries and commissions } & \$ 150,000 \\\hline \text { Factory manager's salary } & \$ 50,000 \\\hline \text { Utility costs factory } & \$ 50,000 \\\hline \text { Utility costs sales office } & \$ 20,000 \\\hline\end{array} Direct materials used in production Depreciation factory building Depreciation factory equipment Depreciation sales department automobiles Direct wages factory employees Sales department salaries and commissions Factory manager’s salary Utility costs factory Utility costs sales office $200,000$10,000$50,000$10,000$200,000$150,000$50,000$50,000$20,000 What was the total of manufacturing costs?
A) $510,000.
B) $740,000.
C) $560,000.
D) $400,000.
Manufacturing Costs
Expenses directly associated with the production of goods, including materials, labor, and factory overhead.
General Ledger
The general ledger is a comprehensive record of a company's financial transactions over the life of the organization, which is the foundation of a company's double-entry accounting system.
Direct materials
Direct materials are raw materials that can be directly traced to the production of specific goods or services, forming part of the finished product.
- Calculate manufacturing costs and cost of goods sold.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
C
Explanation :
Manufacturing costs include direct materials, direct labor, and manufacturing overhead. In this case, direct materials used in production ($200,000), direct wages for factory employees ($200,000), depreciation on factory building ($10,000), depreciation on factory equipment ($50,000), factory manager's salary ($50,000), and utility costs for the factory ($50,000) are included. Adding these together gives $200,000 + $200,000 + $10,000 + $50,000 + $50,000 + $50,000 = $560,000.
Learning Objectives
- Calculate manufacturing costs and cost of goods sold.