Question

The following account balances at the beginning of January were selected from the general ledger of Fresh Bagel Manufacturing Company: Work in process inventory Raw materials inventory Finished goods inventory $0 $28.900 $40,800 (Click the icon to view additional data.) More Info What is the unadjusted cost of goods sold for January? O A. $317,200 O B. $252,300 O C. $201,571 OD. $226,500 Additional data: 1. Actual manufacturing overhead for January amounted to $63,000. 2. Total direct labor cost for January was $63,200. 3. The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $240,000 of direct labor cost and $336,000 of manufacturing overhead costs. 4. The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $6,200 (1,300 direct labor hours) and total direct material charges were $14,300. 5. Cost of direct materials placed in production during January totaled $123,900 There were no indirect material requisitions during January 6. January 31 balance in raw materials inventory was $35,700. 7. Finished goods inventory balance on January 31 was $34,900. Print Done

Answer 1

Unadjusted cost of goods sold Be particulars J E Finished goods inventory beginning Add: Cost of Goods Manufacture Goods available for sales Lev: Finished goode Inventory - Closing Cost of goods sold 40800 24 6 yoo 304160 287,909 343SCO (34900) 252300 Workinge Schedule of cost of goods Manufactured Amt (6) particulars 1, 23,900 63200 88,480 275,580 Direct materials used in production Dirut labour costs Applied manufacturing overheads (+63200x1.4) (336000/240000 = $1.4 per dired labour hr) cosh WIP inventory Total cost of WIP closing WIP inventory ($14300 + $6200 + $6200x1.4) Cost of goode manufactured, Total manufacturing Add: opening 275580 (29, 180) Len: $304760 246 400