Barefoot Running Company's work in process inventory on June 1 has a balance of $ 22 comma 800$22,800 representing Job No. 265. During June, $ 50 comma 000$50,000 of direct materials were requisitioned for Job No. 265 and $ 35 comma 000$35,000 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 115115 % of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $ 41 comma 400$41,400. No new jobs were started during June. Job No. 265 is completed on June 28. What is the total cost assigned to Job No. 265?

Question

Business

Blaine

6 February, 08:30

Barefoot Running Company's work in process inventory on June 1 has a balance of $ 22 comma 800$22,800 representing Job No. 265. During June, $ 50 comma 000$50,000 of direct materials were requisitioned for Job No. 265 and $ 35 comma 000$35,000 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 115115 % of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $ 41 comma 400$41,400. No new jobs were started during June. Job No. 265 is completed on June 28. What is the total cost assigned to Job No. 265?

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Answers (1)

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Amara Wells · Answer 1

The total cost assigned to Job No. 265 is $148,050

Explanation:

The computation of the total cost is shown below:

= Beginning balance of work in progress inventory + direct material cost + direct labor cost + manufacturing overhead cost

= $22,800 + $50,000 + $35,000 + $40,250

= $148,050

The manufacturing overhead cost is computed by

= Direct labor cost * allocation percentage

= $35,000 * 115%

= $40,250