Question
Champagne of the South, Inc., a manufacturer of bottled sweet tea, had the following beginning and ending inventories for the year ended December 31, 2012:
Champagne of the South, Inc., a manufacturer of bottled sweet tea, had the following beginning and ending inventories for the year ended December 31, 2012:
January 1 | December 31 | |
Raw Materials Inventory | $10,000 | $4,988 |
Work in Process Inventory | $17,448 | $17,000 |
Finished Goods Inventory | $21,000 | $16,500 |
*Raw Materials Inventory consists of both direct material and indirect material.
During the year, direct labor costs of $30,000 were incurred, manufacturing overhead totaled $42,000, materials purchased were $27,000, and selling and administrative costs were $22,000. Champagne sold 25,000 units of product during the year at a sales price of $5.00 per unit. What were the total manufacturing costs for the year assuming $2,802 of indirect materials were used during the period?
1) The total manufacturing costs for the year are $______.
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