Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PCA Limited has just completed its first year of operations. During the year, PCA Limited purchased $500,000 of materials. The year-end balance reported in the

PCA Limited has just completed its first year of operations. During the year, PCA Limited purchased $500,000 of materials. The year-end balance reported in the raw materials account was $50,000. An amount of $30,000 worth of the raw materials utilized was considered to be indirect materials. PCA Limited incurred $450,000 in total direct labour wages during the year. Factory wages were paid $25 per hour. Total manufacturing overhead during the year amounted to $350,000, which was $30,000 less than estimated. Total factory workers were 10% less than estimated. PCA Limited utilized direct labour hours to allocated manufacturing overhead. During the year, PCA Limited started and completed Job #101. The job consumed 25% of the total direct materials used this year and 35% of the direct labour hours. PCA Limited uses normal costing, with any over or underallocated manufacturing overhead charged to cost of goods sold.

Determine the total cost forJob #101.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Accounting questions