Question

Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,500 of direct materials, $6,966 of direct labor, and $10,132 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $19.80 per direct labor-hour.

During May, the following activity was recorded:

Raw materials (all direct materials):
Beginning balance	$	9,200
Purchased during the month	$	38,700
Used in production	$	40,000
Labor:
Direct labor-hours worked during the month		2,600
Direct labor cost incurred	$	25,210
Actual manufacturing overhead costs incurred	$	34,000
Inventories:
Raw materials, May 30		?
Work in process, May 30	$	17,119

Work in process inventory on May 30 contains $3,867 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.

The cost of goods manufactured for May was:

Answer 1

Particulars	Amount in ($)
Beginning balance	9,200
Purchased during the month	38,700
Raw materials, May 30	-7,900
Direct Materials Used in production	40,000
Direct labor cost incurred	25,210
Actual manufacturing overhead costs incurred	34,000
Total Manufacturing costs	99,210
Inventories:
Work in process, May 01	19598
Work in process, May 30	-13,252
Cost of goods manufactured	105,556