Question

QUESTION 6 25 points Shatrau Inc., which uses job-order costing, has provided the following data for December: Direct materials ....... Direct labor cost ....... Manufacturing overhead cost incurred..... Manufacturing overhead cost applied ....... $32.000 $45,000 $42.000 $45,000 Inventories: Work in process ..... Finished goods ....... Beginning $24,000 $35,000 Ending $14,000 $48,000 Required: Determine the unadjusted cost of goods sold (in other words, the cost of goods sold before adjusting for any underapplied or overapplied overhead) for December. Show your work!

Answer 1

Answer :-

Particular	Amount
Direct Material	$32,000
Direct Labor	$45,000
Manufacturing Overhead Cost Applied	$45,000
Total Manufacturing Cost	$122,000
Add :- Beginning work in progress Inventory	$24,000
Less :- Ending work in progress Inventory	($14,000)
Cost of goods manufactured	$132,000
Add :- Beginning Finished Goods Inventory	$35,000
Good available for sale	$167,000
Less :- Ending Finished Goods Inventory	($48,000)
Unadjusted Cost of goods sold	$119,000