Question

Burger Company had the following inventories at the beginning and end of the month of January. January 1 January 31 Finished Goods 125,000 117,000 Work-in-process 235,000 251,000 Direct materials 134,000 124,000 The following additional manufacturing data was available for the month of January. Direct materials purchased $189,000 Purchase returns and allowances 1,000 Transportation in 3,000 Direct labor 300,000 Actual factory overhead 175,000 Burger Company applies factory overhead at a rate of 60% of direct labor cost, and any overapplied or underapplied factory overhead is deferred until the end of the year, December 31. Burger's total manufacturing cost for January was:

Question 3 options:

$671,000

$669,000

$679,000

$681,000

Answer 1

Burger Co. Computation of Total Manufacturing Cost for January Explanation Add: Less: Less: Add: Add: Add: Particulars Amount($) Opening Direct Materials 134000 Direct Material Purchased 189000 Closing direct material -124000 Purchases Returns and allowanc -1000 Transporation 3000 Direct Labor 300000 Factory Overhead 180000 300000 * 60 % Total Manufacturing costs 681000 Answer is -> Option D $ 681000

Comment below if you have any query i will solve it asap !! thanks