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For this situation, the calculation of total manufacturing cost is as follows: 1  Direct materials. 2  Add the total cost of materials purchases in the period to the cost of beginning inventory, and subtract the cost of ending inventory.3  The result is the cost of direct materials incurred during the period. 4  Direct labor. Direct materials. 2  Add the total cost of materials purchases in the period to the cost of beginning inventory, and subtract the cost of ending inventory. 3  The result is the cost of direct materials incurred during the period. 4  Direct labor.
Direct materials Direct manufacturing labor cost Manufacturing overhead costs $30,000 ï´ 1.90; $30,000 ï´ 1.80 Total manufacturing costs of Job 626 Actual Cost $40,000 30,000 57,000 $127,000 Normal Cost $40,000 30,000 54,000 $124,000 Â© 2009 Pearson Prentice Hall. All rights reserved.4-7 2. During March, the job-cost record for Job 626 contained the following information: Direct materials used $40,000 Direct manufacturing labor costs $30,000 Compute the cost of Job 626 using (a) actual costing and (b) normal costing. 2009 Pearson Prentice Hall. All rights reserved. 4-7 2. During March, the job-cost record for Job 626 contained the following information: Direct materials used $40,000 Direct manufacturing labor costs $30,000 Compute the cost of Job 626 using (a) actual costing and (b) normal costing.