Danby Hardwoods, a custom manufacturer of furniture, uses job-order costing. The

company incurred several transactions in January to support job 402 for a custom

meeting room set - a large table plus 16 chairs.

Budgeted OH for January=$20,000

Budgeted DLH for January=1,000 DLH

Required:

1. Prepare statement of Cost of Goods Manufactured and Sold if we know that Dandy

Hardwoods:

a. Purchased $10,000 of materials

b. Issued $8,500 in raw material to the production department

c. Incurred production labor costs of $12,500 for direct labor

d. Paid $23,250 cash for utilities, power, equipment maintenance and miscellaneous

items for the manufacturing plant (actual MOH)

e. Recognized depreciation on manufacturing property, plant and equipment of

$6,250 (actual MOH)

f. Applied overhead on the basis DLH. Actual direct labor hours=1,250 DLH.

g. Paid sales commission of $2,000

h. Beginning and Ending WIP inventory was $0

i. Beginning RM Inventory was $5,000 and ending RM Inventory was $6,500.

j. Beginning FG was $15,000 and ending FG was $10,000