Question

Under Lamar Company's job costing system, manufacturing overhead is applied to Work-in-Process Inventory using a predetermined overhead rate. During June, Lamar's transactions included the following: Direct materials issued to production $ 91,400 Indirect materials issued to production $ 9,400 Manufacturing overhead cost incurred $ 126,400 Manufacturing overhead cost applied $ 114,400 Direct labor cost incurred $ 108,400 Lamar Company had no beginning or ending inventories. What was the cost of goods manufactured for June

Answer 1

Answer:

$314,200

Explanation:

The computation of the cost of goods manufactured is shown below:

Cost of goods manufactured = Direct materials issued to production + Direct labor cost incurred + Manufacturing overhead cost applied

= $91,400 + $108,400 + $114,400

= $314,200

We simply added the direct material cost, direct labor cost and the manufacturing overhead cost applied so that the cost of goods manufactured could come