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 | $ | 14,550 | $ | 22,550 |
Work in process | $ | 27,550 | $ | 9550 |
Finished Goods | $ | 62,550 | $ | 77,550 |
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 33,550 machine-hours and incur $271,755 in manufacturing overhead cost. The following transactions were recorded for the year:
Raw materials were purchased, $315,550.
Raw materials were requisitioned for use in production, $307,550 ($280,450 direct and $27,100 indirect).
The following employee costs were incurred: direct labor, $377,550; indirect labor, $96,550; and administrative salaries, $172,550.
Selling costs, $147,550.
Factory utility costs, $10,550.
Depreciation for the year was $160,000 of which $144,000 is related to factory operations and $16,000 is related to selling, general, and administrative activities.
Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,110 machine-hours.
Sales for the year totaled $1,285,000.
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) | $ |
Direct Materials used in Production | $ |
Direct Labor | $377,550 |
Total Manufacturing Costs | $ |
Cost of Goods Manufactured | $ |
Adjusted Cost of Goods Sold | $ |
Total Selling and Admin Exp | $336,100 |
Operating Income | $ |
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