Question
Parker company has a job-order costing system and uses a pre-determined overheard rate based on direct labor hours to apply manufacturing overheard to jobs. At
Parker company has a job-order costing system and uses a pre-determined overheard rate based on direct labor hours to apply manufacturing overheard to jobs. At the beginning of the year, manufacturing overheard and direct labor hours for the year were estimated at $50,000 and 25,000 hours respectively. In June, Job #461 was started, completed, and sold to the customer. Materials cost on the job totaled $4,000 and labor costs were $5 per hour and totaled $1,500. Sales commissions incurred on this sale totaled $250. The cost of goods sold related to Job #461 is:
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