TB MC Qu. 4-58 Randall Company manufactures products to ... Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1 December 31 Direct materials $ 80,000 $ 43,000 Work in process 69,000 45,000 Finished goods 118,000 103,000 Other information Direct materials purchases $ 327,000 Cost of goods available for sale 956,000 Actual factory overhead costs 263,000 The cost of goods manufactured during the year is:

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Business

Nolan Mayer

19 October, 13:32

TB MC Qu. 4-58 Randall Company manufactures products to ... Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1 December 31 Direct materials $ 80,000 $ 43,000 Work in process 69,000 45,000 Finished goods 118,000 103,000 Other information Direct materials purchases $ 327,000 Cost of goods available for sale 956,000 Actual factory overhead costs 263,000 The cost of goods manufactured during the year is:

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Answers (1)

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Mitchell Trevino · Answer 1

Cost of goods manufactured = $838,000

Explanation:

Giving the following information:

Factory overhead cost was applied at 125% of direct labor cost.

January 1:

Direct materials $ 80,000

Work in process 69,000

Finished goods 118,000

December 31:

Direct materials $43,000

Work in process $45,000

Finished goods $103,000

Direct materials purchases $ 327,000

Cost of good available for sale = 956,000

Cost of good available for sale = beginning finished inventory + cost of goods manufactured

956,000 = 118,000 + X

Cost of goods manufactured = $838,000