Question

Robin Company has the following balances for the current month: Direct materials used Direct labor Sales salaries Indirect labor Production manager's salary Marketing costs Factory lease $23,000 $19,800 $ 8, 750 $ 1,500 $ 6,210 $ 9,560 $ 4,475 What is Robin's total manufacturing cost? Multiple Choice $42,800 $54,985 $73,295

Answer 1

ROBIN'S COMPANY Cost Of Good Manufactured Statement   

Cost	$	$
Raw Material:
Direct Material	$23,000
Cost Of Raw Material Used:		$23,000
Direct Labour		$19,800
Prime Cost:		$42,800
Manufacturing Cost:
Indirect Labour	$1,500
Production Manager's Salary	$6,210
Factory Lease	$4,475	$12,185
Total Manufacturing Cost:		$54,985

Answer : Robin's Total Manufacturing Cost Is $54,985 Working Note : (A) Sales Salaries : In Manufacturing Cost Are Often Referred To As Non-manufacturing Costs , Sales Salaries Included  In Selling Expenses (B) Marketing Cost : It Dosenot Included In Manufacturing Costs , Matketing Cost Included In     Administrative Costs