Question
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The following information is for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories: Materials $ 24,000 Work-in-process (All Job X) 53,400 Finished goods 105,600 Materials purchases $ 157,000 Direct materials requisitioned: Job X $ 74,000 Job Y 68,000 Direct labor hours: Job X 7,000 Job Y 5,500 Labor costs incurred: Direct labor ($6.00 per hour) $ 75,000 Indirect labor 24,200 Factory supervisory salaries 11,100 Rental costs: Factory $ 9,300 Administrative offices 3,200 Total equipment depreciation costs: Factory $ 10,400 Administrative offices 2,800 Indirect materials used $ 17,800
Cost of goods manufactured for September is:
Answers could be: $157,300. $105,600. $145,500. $210,700. $169,400.
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