Randall Company manufactures products to customer specifications. A job costing

Question

Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 116% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1    December 31    Direct materials $70,500 $37,200 Work in process $61,100 $38,800 Finished goods $107,000 $93,700 Other information Direct materials purchases $301,400 Cost of goods available for sale $897,900 Actual factory overhead $240,200 The total manufacturing costs for the year are:   $769,600 $791,900 $768,600 $790,900 $829,700 Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 116% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1    December 31    Direct materials $70,500 $37,200 Work in process $61,100 $38,800 Finished goods $107,000 $93,700 Other information Direct materials purchases $301,400 Cost of goods available for sale $897,900 Actual factory overhead $240,200 The total manufacturing costs for the year are:   $769,600 $791,900 $768,600 $790,900 $829,700

Explanation / Answer

Solution:

Cost of Goods Available for Sale 897,900 Less: Beginning Finished Goods -107,000 Total cost of Manufacturing 790,900 Therefore, the answer to the above question is $ 790,900

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