Question

Fact Pattern:Hamilton Company uses job-order costing. Manufacturing overhead is applied to production at a predetermined rate of 150% of direct labor cost. Any over- or underapplied overhead is closed to the cost of goods sold account at the end of each month. Additional information is available as follows:

1. Job 101 was the only job in process at January 31, with accumulated costs as follows:

   Direct materials	$4,000
   Direct labor	2,000
   Applied manufacturing overhead	3,000
   Total manufacturing costs	$9,000

2. Jobs 102, 103, and 104 were started during February.
3. Direct materials requisitions for February totaled $26,000.
4. Direct labor cost of $20,000 was incurred for February.
5. Actual manufacturing overhead was $32,000 for February.
6. The only job still in process on February 28 was Job 104, with costs of $2,800 for direct materials and $1,800 for direct labor.

The cost of goods manufactured for February was

A) $78,000

B) $77,700

C) $85,000

D) $79,700

Answer 1

Hi

Let me know in case any issue and query: