Question

The following cost data for the month of May were taken from the records of the Terrence Manufacturing Company: Depreciation on factory equipment $1,000 Depreciation on sales office 500 Advertising 7,000 Wages of production workers 28,000 Raw materials used 47,000 Sales salaries and commissions 10,000 Factory rent 2,000 Factory insurance 500 Materials handling 1,500 Administrative salaries 2,000 Based upon this information, the manufacturing cost incurred during the month was: Group of answer choices

Answer 1

Answer:

80,000

Explanation:

Cost data of the month of May was taken from Terrence manufacturing company

The manufacturing cost incurred during the month can be calculated as follows

= wages of production workers + raw materials + materials handling + factory rent + factory insurance + depreciation of factory equipment

= 28,000 + 47,000 + 1,500 + 2,000 + 500 + 1,000

= 80,000

Hence the manufacturing cost incurred during the month is 80,000