Question

Question 21 (4 points) Sparky Inc. uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2012 totaled $18,000 of materials, $9,000 of direct labor costs, and $6,000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $15,000, and the ending balance is $9,000. During the year, the company completed 40 machines. How much is the cost per machine? a) $675 b) $1,200 c) $825 d) $975

Answer 1

K $ 18000 $ 9000 costs Mandarting $ 6000 = $ 15000 WIP = $ 9000 Nember of machings : ho machines, Given, Maderials Direet labor Ovechlad Beginning wise Ending complet Computing cost of machines Beginning work in proces Maderials Direed labore cool Manufacturing Overhead Total $ 48000 hess : Ending Work in proces $ 19000) Tolal cost of machine $ 39000 Cost pen machine =/ Total corl of machine No. of machines completed ) 40 machine $ 150oo £ 18000 . 9000 q 6000 : $ 39000 71975] (Ane.) Answer: Option d. & 1975