Question
Atlantic Manufacturing Corp operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. The company has provided
Atlantic Manufacturing Corp operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. The company has provided the following data: | |||
| |||
(Amounts in dollars $) |
| ||
Estimated direct labor cost | 85,000 |
| |
Actual direct labor cost | 87,000 |
| |
Estimated manufacturing overhead costs | 148,750 |
| |
Actual manufacturing overhead costs | 147,300 |
| |
Purchases of raw materials (all direct) | 141,000 |
| |
| |||
Beginning | Ending |
| |
Raw materials | 23,000 | 16,000 |
|
Work in Process | 44,000 | 36,000 |
|
Finished Goods | 90,000 | 63,000 |
|
| |||
| |||
Information about Job 137 (use to answer related question below): |
| ||
Direct materials | 3,200 |
| |
Direct labor | 4,200 |
| |
| |||
|
E) Compute the amount of adjusted cost of goods sold for the period. Assume that all over/under-applied overhead is closed to COGS.
Do not include dollar signs, commas or decimals in your response.
Answer:
F) Refer to the schedule of beginning and ending balances. Assume direct labor makes up $9,000 of the ending Work in Process inventory balance. Compute the amount of direct materials included in ending Work in Process.
Do not include dollar signs, commas or decimals in your response.
Answer:
G) Job 137 was started and completed during the year (see above for data pertaining to this job). If the company's selling prices are based on a 40% markup over total job cost, what was the selling price for job 137?
Do not include dollar signs, commas or decimals in your response. Round to nearest whole dollar.
Answer:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started