Chapter 14, Problem 8QS

To determine

Direct Materials:

Direct materials incorporate the items or materials used in the production of the product meant for the purpose of sale.

Indirect Materials:

The materials that indirectly helps in the production of goods though not end up being the part of the final output are the indirect materials.

Raw Materials:

The materials which are yet to go through the production process so to reshape into end products are the raw materials. They form a part of the inventory and are recorded as current asset in the balance sheet.

Direct Labor:

The manpower directly linked with the production of goods is termed as direct labor.

Depreciation Expense:

Depreciation expense is mainly related with the tangible assets wherein a part of the asset utilized during a year is termed as an expense for that particular period.

Manufacturing Cost:

The total of the cost associated with the production process is termed as manufacturing cost. It comprises of cost directly related to the labor and materials as well as that of factory overhead.

To compute: The total manufacturing cost.