Question
Problem 3-151 Bakerston Company is a manufacturing... Bakerston Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at
Problem 3-151 Bakerston Company is a manufacturing...
Bakerston Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: |
Beginning Balance | Ending Balance | |||||
Raw materials | $ | 11,800 | $ | 15,200 | ||
Work in process | $ | 32,800 | $ | 14,000 | ||
Finished goods | $ | 106,000 | $ | 121,000 | ||
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 17,400 machine-hours and incur $261,000 in manufacturing overhead cost. The following transactions were recorded for the year: |
Raw materials were purchased, $412,000. | |
Raw materials were requisitioned for use in production, $408,600 ($384,000 direct and $24,600 indirect). | |
The following employee costs were incurred: direct labor, $333,000; indirect labor, $71,000; and administrative salaries, $154,000. | |
Selling costs, $115,000. | |
Factory utility costs, $26,000. | |
Depreciation for the year was $123,000 of which $113,000 is related to factory operations and $10,000 is related to selling, general, and administrative activities. | |
Manufacturing overhead was applied to jobs. The actual level of activity for the year was 14,500 machine-hours. | |
Sales for the year totaled $1,283,000. |
Required: | |||||
a. | Prepare a schedule of cost of goods manufactured in good form. (Do not round predetermined overhead rate. Input all amounts as positive values. Omit the "$" sign in your response.)
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