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Chum Company has just completed its first year of operations. During the year, Chum Company purchased $497,000 of materials. The year- end balance reported
Chum Company has just completed its first year of operations. During the year, Chum Company purchased $497,000 of materials. The year- end balance reported in the raw materials account was $50,000. $40,000 of the raw materials consumed was considered as indirect materials and entered into manufacturing overhead. Chum Company incurred $1,100,000 in total direct labor wages during the year, Factory workers are paid $25 per hour. Total manufacturing overhead during the year amounted to $321,000, which was $29,000 less than estimated. Total factory worker hours were 10% less than estimated. Chum Company's manufacturing overhead was allocated using direct labor hours as the allocation base. Chum Company charges any over or under-allocated manufacturing overhead to cost of goods sold During the year, Chum Company started and completed Job 003. This job consumed 30% of the total direct direct materials used this year and 50% of the direct labor hours. Determine the total cost for Job 003
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