Question

TB MC Qu. 3-204 Dacosta Corporation had only one job... Dacosta Corporation had only one job in process on May 1. The job had been charged with $1,850 of direct materials, $6,990 of direct labor, and $9,950 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.50 per direct labor-hour. During May, the following activity was recorded: $ 8,550 $38,050 $39,350 Raw materials (all direct materials): Beginning balance Purchased during the month Used in production Labor: Direct labor-hours worked during the month Direct labor cost incurred Actual manufacturing overhead costs incurred Inventories: Raw materials, May 30 Work in process, May 30 1,950 $ 24,560 $33,350 $ 16,950 Work in process inventory on May 30 contains $3,750 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The cost of goods manufactured for May was:

Answer 1

Total cost of work in process

= Beginning work in process + Direct materials + Direct Labor + Overhead applied

= (1850+6990+9950) + 39,350 + 24,560 + (1,950*18.50)

= 18,790 + 39,350 + 24,560 + 36,075

= 118,775

Cost of Goods manufactured = Total cost of work in process - Ending work in process

= 118,775 - 16,950

= 101,825

Comment if you face any issues