Budgeted Actual Direct Labor Hours 10,000 11,000 Direct Labor cost $100,000 $110
ID: 2479396 • Letter: B
Question
Budgeted Actual
Direct Labor Hours 10,000 11,000
Direct Labor cost $100,000 $110,000
Overhead $100,000 $ 90,000
Administrative costs $ 50,000 $ 55,000
Other Information:
Beginning Raw Materials: $50,000
Beginning WIP (Job 1) $75,000
Beginning FG (Job X) $112,000
Raw Materials Purchases during the year - $450,000
Job Information (in no particular order)
Labor Hours Materials
Job1 900 $ 60,000
Job2 2,500 $125,000
Job3 1,400 $ 50,000
Job4 4,000 $125,000
Job5 900 $ 25,000
Job6 1,300 $ 90,000
Total 11,000 $475,000
Note: Jobs X,1,2 & 6 were sold for $850,000
Job 4 was completed but not sold at year end.
Compute Cost of Goods Sold
Explanation / Answer
Budgeted Actual Labor Hours Materials Status Direct Labor Hours 10000 11000 Job1 900 $ 60,000 Completed Sold Direct Labor cost $ 100,000 $ 110,000 Job2 2,500 $ 125,000 Completed Sold Overhead $ 100,000 $ 90,000 Job3 1,400 $ 50,000 Administrative costs $ 50,000 $ 55,000 Job4 4,000 $ 125,000 Job5 900 $ 25,000 Beginning Raw Materials: $ 50,000 Job6 1,300 $ 90,000 Completed Sold Beginning WIP (Job 1) $ 75,000 Total 11,000 $ 475,000 Beginning FG (Job X) $ 112,000 Raw Materials Purchases during the year $ 450,000 Statement of cost of goods sold Beginning raw material $ 50,000 Add: purchases $ 450,000 Total raw material $ 500,000 Ending raw material(balancing) $ 25,000 raw material used in production $ 475,000 Direct labor cost $ 110,000 Overhead $ 100,000 Std rate applied Total manufacturing Cost $ 685,000 Add: Beginning WIP(Job 1) $ 75,000 Less: Closing WIP(Job 3 & Job 5) $ 98,000 Cost of goods manufactured $ 662,000 Add: Beginning FG(Job X) $ 112,000 Less: Closing FG(Job 4) $ 165,000 Cost of goods sold $ 609,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.