Question

Arturo Manufacturing Company provided the following information for the year 2012:

Beginning balancework in process inventory $12,000

Ending balancework in process inventory $28,000

Beginning balancedirect materials inventory $42,000

Ending balancedirect materials inventory $30,000

Purchasesdirect materials $180,000

Direct labor $235,000

Indirect materials $23,500

Indirect labor $9,500

Depreciation on factory plant & equipment $12,000

Plant utilities & insurance $135,000

What was the amount of manufacturing costs incurred during the year?

A) $427,000

B) $607,000

C) $180,000

D) $595,000

Answer

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