Swanson Therapeutics manufactures anti-fatigue floor mats that provide extra cushion and support for people who spend a
Question:
Swanson Therapeutics manufactures anti-fatigue floor mats that provide extra cushion and support for people who spend a lot of time on their feet. The mats can be used in industrial, retail, office, and home environments. A growing area of use is for people who have chosen to use a standing desk in their office.
Swanson uses a job order costing system to accumulate product costs and applies overhead to its jobs using machine hours as the application base. For the current year, the company budgeted $6,000,000 in manufacturing overhead and planned to use 150,000 machine hours, resulting in a predetermined overhead rate of $40/machine hour.
During March, Swanson incurred the following costs:
Raw material purchases | $194,000 |
Direct materials used in production | $162,400 |
Indirect materials used in production | $40,700 |
Direct labor payroll | $160,100 |
Indirect labor payroll | $71,000 |
Payments for other manufacturing overhead | $125,000 |
The table below summarizes production and sales activity for the month of March. Jobs 170 and 171 were the only new jobs started during March. Jobs 146, and 170 were completed during March.
Job | Beginning Balance | Direct Materials Added | Direct Labor Added | Machine Hours | Units completed | Units sold |
145 | $60,000 | $43,000 | $69,000 | 6,000 | ||
146 | 38,000 | 49,000 | 51,400 | 4,800 | 2,000 | 2,000 |
170 | 9,800 | 12,700 | 700 | 500 | 300 | |
171 | 60,600 | 27,000 | 9,200 | |||
TOTAL | $98,000 | $162,400 | $160,100 | 20,700 |
Calculate the total cost as of March 31 for each of the jobs worked on in March. ROUND YOUR ANSWERS TO WHOLE DOLLARS (###). DO NOT INCLUDE A '#x27; IN YOUR ANSWER.
Job 145
Job 146
Job 170
Job 171
Question at position 8
Question at position 8
Calculate total manufacturing cost for March.
Calculate cost of goods manufactured for March.
Calculate unadjusted cost of goods sold for March.
Accounting Information Systems
ISBN: 9780132871938
11th Edition
Authors: George H. Bodnar, William S. Hopwood