Question: Gardi Manufacturing uses normal costing for its job costing system which

Gardi Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost category (manufacturing overhead). The following information is obtained for 2014:
Total manufacturing costs, $ 8,300,000
Manufacturing overhead allocated, $ 4,100,000 (allocated at a rate of 250% of direct manufacturing labor costs)
Work-in-process inventory on January 1, 2014, $ 420,000
Cost of finished goods manufactured, $ 8,100,000

1. Use information in the first two bullet points to calculate
(a) Direct manufacturing labor costs in 2014
(b) Cost of direct materials used in 2014.
2. Calculate the ending work-in-process inventory on December 31, 2014.

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  • CreatedMay 14, 2014
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