Question: The Rebecca Corporation is a manufacturer of machines made to

The Rebecca Corporation is a manufacturer of machines made to customer specifications. All production costs are accumulated by means of a job order costing system. The following information is available at the beginning of the month of October.
Raw materials inventory, October 1 ..... $16,200
Work in process, October 1 ........ 5,100

A review of the job order cost sheets revealed the composition of the work in process inventory on October 1 as follows:
Direct materials (assuming no indirect materials this month) ..... $1,320
Direct labor (300 hours) .................. 3,000
Factory overhead allocated ................. 780

Activity during the month of October was as follows:
Raw materials costing $20,000 were purchased.
Direct labor for job orders totaled 3,300 hours at $10 per hour.
Factory overhead was allocated to production at the rate of $2.60 per direct labor hour.
On October 31, inventories consisted of the following:
Raw materials inventory .... $17,000
Work in process:
Direct materials ....... 4,320
Direct labor (500 hours) ..... 5,000
Factory overhead allocated ... 1,300

Prepare in good form a detailed schedule showing the cost of goods manufactured for the month of October.

Sale on SolutionInn
  • CreatedJanuary 26, 2015
  • Files Included
Post your question