Question

bunnel Corporation is a manufacturer that uses jo-order costing. on January 1, the company's inventorh balance were as follow

raw materials $40,000

work in process. $18,00

finished goods. $35,000

in 3 HW Save & Exit Check my work 10 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $16.25 per direct labor-hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor hours. The following transactions were recorded for the year Part 10 of 15 066 a. Raw materials were purchased on account, $510,000 b. Raw materials use in production, $480,000. All of of the raw materials were used as direct materials c. The following costs were accrued for employee services direct labor. 5600,000, indirect labor, $150,000, selling and administrative salaries, $240.000 d. Incurred various selling and administrative expenses (eg, advertising, sales travel costs, and finished goods warehousing) $367000 e. Incurred various manufacturing overhead costs leg. depreciation, insurance, and utilities). $500,000 f Manufacturing overhead cost was applied to production. The company actually worked 41000 direct labor hours on all jobs during the year. g. Jobs costing $1680,000 to manufacture according to their job cost sheets were completed during the year h. Jobs were sold on account to customers during the year for a total of $2.800,000. The jobs cost $1690,000 to manufacture according to their job cost sheets References 10. What is the cost of goods available for sale during the year? Cost of goods available for sale < Prev 10 11 12 15 of 15 Next > Type here to search

Answer 1

Cost of goods available for sale = Finished goods inventory + Cost of jobs completed
= $35000 + 1680000 = $1715000