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The final cost of the machined part depends on the price of the raw material and on the cost to machine it Simple machining costs can be calculated by dividing the machine shop rate in dollars per hour by the number of parts being produced per hour Material cost is simply the weight of raw material being used multiplied by its cost in dollars .
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The cost of many raw materials has almost doubled, and coating manufacturers have not been able to pass on all the increased costs to users This has focused unprecedented attention on formulating practic
Direct materials: Raw materials inventory, beginning $8,000 Add purchases of raw materials 32,000 Raw materials available for use 40,000 Deduct raw materials inventory, ending 7,000 Raw materials used in production $33,000 Direct labor 40,000 Manufacturing overhead cost applied to work in process 50,000 Total manufacturing cost ,
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