Gardi Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and

Question:

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


Required

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.


Fantastic news! We've located the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Cost Accounting A Managerial Emphasis

ISBN: 978-0133428704

15th edition

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

Question Posted: