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Clark Co. uses normal absorption job order costing. Factory Overhead is applied to production at a budgeted rate of 300% of prime costs (direct materials
Clark Co. uses normal absorption job order costing. Factory Overhead is applied to production at a budgeted rate of 300% of prime costs (direct materials plus direct labor). Clark Co. policy is to not pro-rate any over or under applied overhead amounts. All inventory amounts listed next are after disposition of any over or under applied overhead. Direct Labor = $100,000 Beginning balance of stores (direct materials) = $20,000 Ending Balance of stores = $20,000 Purchased $50,0000 of direct materials during period Beginning Balance of work in process = $300,000 Cost of Goods Sold = $350,000 Finished goods beg. Inventory = $100,000 Finished goods ending inventory = $200,000 Determine the following: (please show work) 1.Direct Materials used 2.Factory Overhead Applied 3.Cost of goods manufactured 4.Actual factory overhead for the period
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