Question
Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of
Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below.
Direct Materials January 1 = $77,000 Direct Materials December 31 = 40,000
WIP January 1 = 66,000 WIP December 31 = 42,000
Finished Goods January 1 = 115,000
Finished Goods December 31 = 100,000
Other Information:
Direct Materials Purchased = $324,000
Cost of Goods Available for Sale = 950,000
Actual Factory Overhead = 260,000
The total manufacturing costs for the year are:
A-)$850,000. B-) $348,000. C-) $867,000. D-) $835,000. $811,000.
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