r that uses job-order costing. The company closes out any or underapplled to Cos

Question

r that uses job-order costing. The company closes out any or underapplled to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year Beginning inventories: goods 30,000 Estimated total manufacturing overhead at the beginning of the year $568,000 Estinated direct labor-hours at the beginning of the year 32,000 direct labor-hours Results of operations 501,000 $683,000 for use in production Direct labor cost Actual direct labor-hours Manufacturing overhead 33,000 direct labor-hours Indirect labor cost Other manufacturing overhead costs incurred s 176,000 $ 420,000 Selling and administrative: Other selling and administrative expenses Cost of goods manufactured Sales revenue Cost of goods sold (unadjusted) s 19,000 346,000 $ 1,567,000 $ 2,498,000 $ 1,376,000 Pres· 12 25 Next >

Explanation / Answer

Calculate total manufacturing cost added to work in process :

Predetermine overhead rate = 568000/32000 = 17.75 per direct labour hour

so answer is b) $1769750

Direct material 501000 Direct labour cost 683000 Manufacturing overhead applied (33000*17.75)   585750 Total manufacturing cost 1769750

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