Question
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year:
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year:
| Beginning Balance | Ending Balance | ||
Raw materials | $ | 14,950 | $ | 22,950 |
Work in process | $ | 27,950 | $ | 9950 |
Finished Goods | $ | 62,950 | $ | 77,950 |
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,950 machine-hours and incur $302,155 in manufacturing overhead cost. The following transactions were recorded for the year:
Raw materials were purchased, $315,950.
Raw materials were requisitioned for use in production, $307,950 ($280,050 direct and $27,900 indirect).
The following employee costs were incurred: direct labor, $377,950; indirect labor, $96,950; and administrative salaries, $172,950.
Selling costs, $147,950.
Factory utility costs, $10,950.
Depreciation for the year was $184,000 of which $173,000 is related to factory operations and $11,000 is related to selling, general, and administrative activities.
Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,190 machine-hours.
Sales for the year totaled $1,325,000.
Required:
Do not enter any commas (except for the pre-determined OH rate) and round to the nearest dollar
Based on the data presented above, complete the following Table
Pre-Determined OH Rate (round to 2 decimal places) | $Blank 1 |
Direct Materials used in Production | $Blank 2 |
Direct Labor | $377,950 |
Total Manufacturing Costs | $Blank 3 |
Cost of Goods Manufactured | $Blank 4 |
Adjusted Cost of Goods Sold | $Blank 5 |
Total Selling and Admin Exp | $331,900 |
Operating Income | $Blank 6 |
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