The total manufacturing costs
Oriole Inc. has beginning work in process $28,300, direct materials used $264,000, direct labor $242,000, total manufacturing overhead $198,000, and ending work in process $34,600. What are the total manufacturing costs?
Sample Solution
Total manufacturing costs = Beginning work in process + Direct materials used + Direct labor + Total manufacturing overhead - Ending work in process
Total manufacturing costs = $28,300 + $264,000 + $242,000 + $198,000 - $34,600
Total manufacturing costs = $738,700.
The total manufacturing cost is calculated by adding the beginning and direct materials used along with the direct labor and total manufacturing overhead then subtracting the ending work in process.