During August, Altamont Machine Company started production orders 116, 117, and 118. Older 115 was in process at the beginning of the month with direct materials costs of $35,000, direct labor costs of $21,000, and applied factory overhead of $25,200. During the month, direct materials were requisitioned, and direct labor was identified with the orders as follows:

Factory overhead is applied to the orders at 120 percent of direct labor cost. Orders 115, 116, and 117 were completed and sold in August. Order 118 was incomplete on August 31.

Required: 

1. Determine the cost of each order by cost element.

2. What was the total cost of direct materials requisitioned in August and charged to Work in Process?

3. Determine the cost of goods sold in August.

4. What was the Work in Process balance on August 31?

Transcribed Image Text:

Order No. Direct Materials Direct Labor 115.. $ 26,000 116... $ 39,000 45,000 117. 53,000 47,000 118 47,000 16,000