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The following costs are attributed to the Quilt Company: Purchase of raw materials (all direct) $297,000 Direct labour cost $141,600 Manufacturing overhead costs $166,260 Inventories:
The following costs are attributed to the Quilt Company:
Purchase of raw materials (all direct)
$297,000
Direct labour cost
$141,600
Manufacturing overhead costs
$166,260
Inventories:
Beginning raw materials
$10,000
Ending raw materials
$8,000
Beginning work in process
$20,000
Ending work in process
$15,600
Beginning finished goods
$20,000
Ending finished goods
$5,600
Quilt Company used a 120% predetermined overhead rate based on direct labour cost.
Required:
a- Calculate the cost of goods manufactured. (7 marks)
b- What was the cost of goods sold before adjusting for any under or over applied overhead? (3 marks)
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