Dacosta Corporation had only one job in progress on May 1. The job had been charged with
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Question:
Dacosta Corporation had only one job in progress on May 1. The job had been charged with $2,300 of direct materials, $6,966 of direct labor, and $10,076 of manufacturing overhead. The company assigns overhead to jobs using the default overhead rate of $19.40 per direct labor hour.
During the month of May the following activity was recorded:
Raw materials (all direct materials): | ||
Opening balance | ps | 9,000 |
Purchased during the month | ps | 38,500 |
used in production | ps | 39,800 |
Manpower: | ||
Direct labor-hours worked during the month | 2,400 | |
Direct labor cost incurred | ps | 25,010 |
Actual manufacturing overhead costs incurred | ps | 33,800 |
Inventories: | ||
Raw materials, May 30 | ? | |
Work in progress, May 30 | ps | 17,067 |
Work-in-process inventory as of May 30 contains $3,831 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.
Calculate the cost of manufactured goods for May.
Related Book For
Managerial Accounting for Managers
ISBN: 978-0073527130
2nd edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
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