Question
Gatti Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost category (manufacturing
Gatti Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost category (manufacturing overhead). The following information is obtained for 2017:
Total manufacturing costs, $ 8,100,000$ times Manufacturing overhead allocated, $3,600,000(allocated at a rate of 250% of direct manufacturing labor costs) times Work-in-process inventory on January 2017,$400,000 times Cost of finished goods manufactured, $8,040,000
1. | Use information in the first two bullet points to calculate (a) direct manufacturing labor costs in 2017 and (b) cost of direct materials used in 2017. |
2. | Calculate the ending work-in-process inventory on December 31,2017. |
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