Question
In its job costing system, Indigo Co. applies MOH to jobs using a budgeted MOH rate based on DL dollars. The rate, which is
In its job costing system, Indigo Co. applies MOH to jobs using a budgeted MOH rate based on DL dollars. The rate, which is 200% of DL dollars, was calculated last December and will be used throughout the current year. On August 1, Indigo had one job, #150, in process, with DM costs of $2,300 and DL costs of $3,300. During August, direct material and direct labor costs were added to Job #150, as well as new Jobs #151 and # 152, as follows. Job #150 Job #151 Job #152 Direct materials 0 $4,300 $1,300 Direct labor $1,800 $5,300 $2,800 Actual MOH cost for the month of August was $22,100. During the month, Indigo completed Jobs #150 and #151. (a) Your answer is incorrect. What was Indigo's Cost of Goods Manufactured for the month of August? Cost of goods manufactured $
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