Question - folklore industries ltd manufactures


Question - Folklore Industries Ltd. manufactures old-fashioned pianos. During the month of February, there was a fire in the factory and warehouse, and some of Folklore's financial records were destroyed. The accountant was able to retrieve the following information:

  • Direct materials purchased during the month totalled $320,000.
  • According to a note left by warehouse staff, the amount of direct materials inventory at the warehouse just before the fire started had decreased by $3,000 from the inventory at the beginning of the month.
  • The payroll records showed direct labour cost for February was $575,000.
  • The total manufacturing costs for February were $1,588,000.
  • The ending work-in-process inventory was $150,000.

No other information was found. What were total manufacturing overhead costs for the month of February?

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