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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.
To compute the cost of direct materials put into production, just multiply the quantities for Beginning, Inputs, and Ending by the $2 cost per unit: Your calculation reveals that you put 2,100 gallons into production, for a total cost of $4,200.ou can apply this formula to the quantity of units in inventory and put into production, and also to the costs of those same units. For example, suppose that a convenience store started the year with ten cans of coffee. During the year, it bought another 200 cans of coffee.