Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs.
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 direct labor cost. Selected data concerning the past year's operation of the company are presented below.
January 1 December 31
Direct materials $ 91,000 $ 54,000
Work in process 80,000 56,000
Finished goods 129,000 114,000
Other information
Direct materials purchases $ 338,000
Cost of goods available for sale 978,000
Actual factory overhead costs 274,000
Calculate the cost of goods sold (before adjustment for under or overapplied overhead).
Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher