Question
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:
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: Beginning Balance Ending Balance Raw materials $ 11,800 $ 15,200 Work in process $ 32,100 $ 14,800 Finished goods $ 110,000 $ 122,000 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 17,500 machine-hours and incur $262,500 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $412,000. Raw materials were requisitioned for use in production, $408,600 ($381,000 direct and $27,600 indirect). The following employee costs were incurred: direct labor, $332,000; indirect labor, $73,000; and administrative salaries, $151,000. Selling costs, $113,000. Factory utility costs, $29,000. Depreciation for the year was $129,000 of which $111,000 is related to factory operations and $18,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 14,800 machine-hours. Sales for the year totaled $1,286,000. Required: a. Prepare a schedule of cost of goods manufactured in good form. (Do not round predetermined overhead rate. Input all amounts as positive values. Omit the "$" sign in your response.)
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