Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bakerston Company 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:

image text in transcribed
image text in transcribed
Bakerston Company 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: 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 17,600 machine-hours and incur $264,000 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were requisitioned for use in production, $407,800($379,000 direct and $28,800 indirect). - The following employee costs were incurred: direct labor, $338,000 : indirect labor, $72,000; and administrative salaries, $155,000. - Selling costs, $113,000. - Factory utility costs, $28,000. - Depreciation for the year was $124,000 of which $114,000 is related to factory operations and $10,000 is related to selling, general, and administrative activities. - Manufacturing overhead was applied to jobs. The actual level of activity for the year was 14,600 machine-hours. - Sales for the year totaled $1,282,000. Required: a. Prepare a schedule of cost of goods manufactured in good form. (Do not round predetermined overhead rate. Input all amounts as positive values. Omit the "\$" sign in your response.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions