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Fittoniya [83]
3 years ago
5

Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,300 of direct materials, $6,966 of di

rect labor, and $10,076 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $19.40 per direct labor-hour.During May, the following activity was recorded:Raw materials (all direct materials): Beginning balance $ 9,000Purchased during the month $ 38,500Used in production $ 39,800Labor: Direct labor-hours worked during the month 2,400Direct labor cost incurred $ 25,010Actual manufacturing overhead costs incurred $ 33,800Inventories: Raw materials, May 30 ?Work in process, May 30 $ 17,067Work in process inventory on May 30 contains $3,831 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.The cost of goods manufactured for May was:
Business
1 answer:
storchak [24]3 years ago
4 0

Answer:

Total cost of goods manufactured = $113,645

Explanation:

As for the information provided:

Opening Work in Process = Direct materials + Labor + Overheads

= $2,300 + $6,966 + $10,076 = $19,342

Adding all the cost for the period

Raw material = $39,800 used in production

Direct labor cost = $25,010

Overheads to be applied on predetermined rate = 2,400 \times $19.40 = $46,560

Total cost incurred including beginning work in process = $130,712

Less: Closing Work in process = $17,067

Total cost of goods manufactured = $113,645

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