Question

can someone please help me understand this practice problem answer and process?

Dacosta Corporation had only one job in process on May 1. The job had been charged with $1900 of direct materials. $6,966 of direct labor, and $9.964 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.60 per direct labor hour During May, the following activity was recorded: $ 8,600 $38,100 $39, 400 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 2,000 $24,610 $33,480 $16,963 Work in process inventory on May 30 contains $3,759 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

Cost of goods manufactured for May	$103,077
Working
Raw materials inventory, May 1	$8,600
Add: Purchases of raw materials	$38,100
Total direct materials available	$46,700
Less: Raw materials inventory, May 30	$7,300
Total raw materials used in production	$39,400
Add: Direct Labor	$24,610
Add: Manufacturing overhead	$37,200
Total manufacturing costs	$101,210
Add: Work in process, May 1	$18,830
	$120,040
Less: Work in process, May 31	$16,963
Cost of goods manufactured	$103,077
Working
Raw materials inventory, May 30 = Total direct materials available - Total raw materials used in production
Raw materials inventory, May 30 = $46,700 - $39,400
Manufacturing overhead = 2,000 x $18.60 = $37,200
Work in process, May 1 = $1,900 + $6,966 + $9,964 = $18,830