Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 2 East Coast Colorworks produces modular office space units. The company uses a job order costing system to accumulate product costs. Because much of

image text in transcribed

Problem 2 East Coast Colorworks produces modular office space units. The company uses a job order costing system to accumulate product costs. Because much of the production process is automated, East Coast has selected machine hours as its overhead application rate In October, East Coast worked on four jobs. Job 105 and Job 106 were started in September and completed and delivered to customers in October. Job 107 and Job 108 were started in October and Job 107 was finished but has yet to be sold. The relevant data for September and October are ob 105 Job 106 Job 107 Job 108 Costs added September Direct materials Direct labor Mfg. Overhead Machine Hours $25,000 36,000 $40,000 1,600 MH $ 10,000 $4,000 $ 500 20 MH Costs added in October Direct materials Direct labor Machine Hours 0 $ 8,000 120 MH $ 9,000 $28,000 500 MH $ 8,000 $12,000 325 MH $ 4,000 500 45 MH Required: a) Calculate the predetermined overhead rate used by East Coast. b) Calculate the total manufacturing cost for October c) Calculate the total cost for each of the five jobs as of October 31. d) Calculate the cost of goods manufactured for October e) Calculate the balance in the Work in Progress Inventory account as of October 31. f) Calculate the Cost of Goods Sold for October. e) Calculate the balance in the finished goods Inventory account as of October 31

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

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

Gleim CIA Review Part 2 Practice Of Internal Auditing

Authors: Irvin N. Gleim

2020 Edition

1618542648, 978-1618542649

More Books

Students also viewed these Accounting questions

Question

Explain the causes of indiscipline.

Answered: 1 week ago