Dacosta Corporation had only one job in process on May 1. The job had been charg

Question

Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,300 of direct materials, $6,966 of direct labor, and $10,076 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $19.40 per direct labor-hour.

During May, the following activity was recorded:

Work in process inventory on May 30 contains $3,831 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.

The cost of goods manufactured for May was:

Raw materials (all direct materials): Beginning balance $ 9,000 Purchased during the month $ 38,500 Used in production $ 39,800 Labor: Direct labor-hours worked during the month 2,400 Direct labor cost incurred $ 25,010 Actual manufacturing overhead costs incurred $ 33,800 Inventories: Raw materials, May 30 ? Work in process, May 30 $ 17,067

Explanation / Answer

Closing inventory of raw materials = materials available - total materials used = 47500-39800 = 7700

Manf overhead applied = direct labor hours * OH per hour = 19.4*2400 = 46,560

Schedule of cost of goods manufactured Particulars Amount Amount Materials: Opening balance          9,000 Add: purchases        38,500 Materials available        47,500 Less: closing inventory          7,700 Total materials used            39,800 Direct labor            25,010 Manufacturing overhead applied            46,560 Total manufacturing costs        1,11,370 Add: beginning WIP            19,342 Less: closing WIP            17,067 Cost of goods manufactured        1,13,645

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.