Answer:
Rockville's ending WIP inventory= $ 135,000
Rockville's COG Manufactured Total Cost of Goods Manufactured = $ 815,000
Net Income $ 793,800
Explanation:
<u>Rockville, Inc. </u>
Budgeted Direct Labor $200,000
Manufacturing Overhead $250,000,
Job number DM DL
#1 $145,000 $35,000
#2 320,000 65,000
#3 55,000 80,000
Rockville's ending WIP inventory= Job#3 = Direct Materials + Direct Labor = 55,000 + 80,000= $ 135,000
Rockville's COG Manufactured
= Job #1 + Job #2= Direct Materials + Direct Labor = $145,000 + $35,000 + 320,000 + 65,000= 565,000
Applied Overhead $250,000
Total Cost of Goods Manufactured = $ 815,000
Less Ending Inventory $ 135,000
Cost of Goods Sold= $ 500,000
Actual Manufacturing Overhead = $ 233,000
Applied Overhead $250,000
Less Over applied Overhead $ 17,000
Adjusted Cost of Goods Sold $ 483,000
Rockville's income statement.
Sales $ 798,000*1.6= $ 1276,800
<u>Less COGS $ 483,000</u>
<u>Net Income $ 793,800</u>
