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Blast Company is a manufacturer that uses job-order costing. Blast applies factory overhead using direct labor dollars as the cost driver and disposes of any
Blast Company is a manufacturer that uses job-order costing. Blast applies factory overhead using direct labor dollars as the cost driver and disposes of any over/under applied overhead using the method covered in class. Blast purchases 100% of its Raw Materials on account from vendor, Jinx Company and provides you the following information about its factory operations: For the twelve months ended 12/31/20X2: Budgeted Raw Material Purchases $175,000 Direct Labor $420,000 Selling & Administrative Salaries $160,000 Factory Overhead $525,000 Direct Labor Hours 10,000 Actual $200,000 $400,000 $150,000 $512,000 9,100 Reported account balances as of: 12/31/20X1 Raw Materials $54,000 Work in process $122,000 Finished Goods $65,000 Accounts Payable- Jinx $12,000 12/31/20X2 $65,000 ? $80,000 $14,000 Consider that Blast reported Sales Revenue for the twelve months ended 12/31/20X2 of $2,100,000. At the end of 20X2 Blast had only a single factory job still in process, Job #2314, which was also started in 20x2. Job #2314's cost record shows $30,000 of direct materials requisitioned and $48,000 of direct labor. What was the company's cost of goods manufactured for the twelve months ended 12/31/20X2? $1,156,000 $1,133,000 $1,073,000 $1,058,000 $1,144,000
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