(Cost flows) Jacob’s Well is a small firm that manufactures decorative “wishing wells” for residential and commercial applications. The firm applies overhead to jobs at a rate of 120 percent of direct labor cost. On December 31, 1997, a flood destroyed many of the firm’s computerized cost records. Only the following information for 1997 was available from the records:

As the accountant of Jacob’s Well, you have been asked to find the following:

a. Cost of goods sold for the year.

b. Cost of goods completed during the year.

c. Cost of direct material used during the year.

d. Amount of applied factory overhead during the year.

e. Cost of direct material purchased during the year.LO1

Transcribed Image Text:

DIRECT MATERIAL INVENTORY Beg. balance $12,300 WORK IN PROCESS INVENTORY Beg. balance $28,000 Purchases Direct Mat. P Direct Lab. 90,000 Over- head End. balance Beg. $4,100 FINISHED GOODS INVENTORY balance $45,000 $24,000 COST OF GOODS SOLD Goods completed ? $685,000 End. balance $42,000 P