Question
RevampScamp uses a job-order costing system. It has two manufacturing departments Fabrication and Assembly. RevampScamp started, completed, and sold only two trailers during January. The
RevampScamp uses a job-order costing system. It has two manufacturing departments Fabrication and Assembly. RevampScamp started, completed, and sold only two trailers during January. The following information is available for January 2018:
Assume RevampScamp's accountant calculated its applied manufacturing overhead for Job A to be $90,000, applied manufacturing overhead for Job b to be $60,000, and a total actual manufacturing overhead of $120,000.
The beginning Finished Goods balance is $170,000. RevampScamp completed and sold Job A during the month. RevampScamp completed Job B, but it did not sell Job B. What is the ending balance in the Finished Goods inventory?
a. $141, 500
b. $198,500
c. $218, 500
d. $196,500
Direct Materials Direct Labor Cost Job A $22,500 $4,500 Job B $24,500 $4,000Step by Step Solution
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