Problem:
Sandor Manufacturing Inc.'s accounting records reflect the following inventories:
Dec. 31, 2013 Dec. 31, 2014
- Raw materials inventory $110,000 $ 90,000
- Work in process inventory 156,000 174,000
- Finished goods inventory 138,000 150,000
During 2014, Sandor purchased $1,440,000 of raw materials, incurred direct labor costs of $300,000, and incurred manufacturing overhead totaling $184,000.
How much is total manufacturing costs incurred during 2014 for Sandor?
a. $1,936,000
b. $1,944,000
c. $1,904,000
d. $1,924,000
Note: Please provide through step by step calculations.