Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Job 731 was recently completed. The following data have been recorded on its job cost sheet: Direct Materials $50,000 Direct Labor (1,400 actual hours) $70,000

Job 731 was recently completed. The following data have been recorded on its job cost sheet:

Direct Materials

$50,000

Direct Labor (1,400 actual hours)

$70,000

The company applies manufacturing overhead on the basis of direct-labor hours. The predetermined overhead rate is based upon an estimated $100,000 of manufacturing overhead for the year and an estimated 1,000 direct labor hours.

Assume no other jobs were worked on during the year and that Job 731 was completed by October 31st, two months before the end of the fiscal year on December 31st.

Assume that actual manufacturing overhead was $110,000 once all of the related bills arrived by December 31st.

Also assume that any related accounts had sufficient balances to complete the job (e.g., Raw Material Inventory) and that Job 731 was sold to the customer before year end.

What is the adjusted balance (after the closing out of the Manufacturing Overhead Variance) in the Cost-of-Goods account after Job 731 was sold to the customer?

$210,000

$230,000

$220,000

$260,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Stacey Whitecotton

1st Edition

0697799271, 978-0697799272

More Books

Students also viewed these Accounting questions