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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.
Labor per unit: 0.2 hours at $14 per hour. Manufacturing overhead: Predetermined rate is 125% of direct labor cost. Compute the standard cost of one unit of product I-Tal. Do it! 25-2 The standard cost of product 999 includes 2 units of direct materials at $6.00 per. unit.