Question

. wvU 4-20 Under Stanford Corporation's job costing system, manufacturing overhead is applied to work in process using a predetermined annual overhead rate. During November, Year 1, Stanford's transactions included the following: Direct materials issued to production Indirect materials issued to production Manufacturing overhead incurred Manufacturing overhead applied Direct manufacturing labor costs $180,000 16,000 250,000 226,000 214,000

Answer 1

Answer: 3. $620,000

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Calculation of the cost of the jobs manufactured (or) completed:
Beginning work in process inventory		$0
Direct materials used	$180,000
Direct labor	$214,000
Manufacturing overhead applied	$226,000
Total manufacturing costs incurred during November [$180,000 + $214,000 + $226,000]		$620,000
Total manufacturing costs to accout for                          [$0 + $620,000]		$620,000
Less: Ending work in process inventory		$0
Cost of the jobs manufactured (or) completed: [$620,000 - $0]		$620,000

Note: Manufacturing overhead applied should be considered instead of manufacturing overhead incurred in the calculation of cost of jobs manufactured.