Kapanga Manufacturing Corporation uses a job-order costing system and started th
ID: 2508714 • Letter: K
Question
Kapanga Manufacturing Corporation uses a job-order costing system and started the month of October with a zero balance in its work in process and finished goods inventory accounts. During October, Kapanga worked on three jobs and incurred the following direct costs on those jobs:
Job B18
Job B19
Job C11
Direct materials
$12,000
$21,000
$18,000
Direct labor
$8,000
$10,000
$5,000
What is Kapanga's cost of goods manufactured for October?
Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October, Kapanga completed Jobs B18 and B19 and sold Job B19.
$50,000
$55,000
$78,000
$82,000
Job B18
Job B19
Job C11
Direct materials
$12,000
$21,000
$18,000
Direct labor
$8,000
$10,000
$5,000
Explanation / Answer
Calculate cost of goods manufactured :
Cost of goods manufactured = 32000+46000 = 78000
so answer is c) $78,000
B18 B19 Direct material 12000 21000 Direct labour 8000 10000 Manufacturing overhead applied 12000 15000 Total cost 32000 46000Related Questions
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