Clark Co. uses normal absorption job-order costing. Factory overhead is applied to production at a budgeted rate of 300% of prime costs (direct materials plus direct labor). Clark Co.’s policy is to not prorate any over- or underapplied overhead amounts. All inventory amounts listed next are after disposition of any over- or under- applied overhead:
Direct labor = $100,000
Beginning balance of stores (direct materials) = $20,000
Ending balance of stores = $20,000
Purchased $50,000 of direct materials during period
Beginning balance of work in process = $300,000
Ending balance of work in process = $300,000
Cost of goods sold = $350,000
Finished goods beg. inventory = $100,000
Finished goods ending inventory = $200,000
Determine the following:
1. Direct materials used
2. Factory overhead applied
3. Cost of goods manufactured
4. Actual factory overhead for the period

  • CreatedNovember 19, 2014
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