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specifications. A job costing system is used to accumulate
production costs. Factory overhead cost was applied at
125% of
direct labor cost. Selected data concerning the past year's
operation of the company are presented below.
Direct Materials January 1 = $77,000
Direct Materials December 31 = 40,000
WIP January 1 = 66,000
WIP December 31 = 42,000
Finished Goods January 1 = 115,000
Finished Goods December 31 = 100,000
Other Information:
Direct Materials Purchased = $324,000
Cost of Goods Available for Sale = 950,000
Actual Factory Overhead = 206,000
The cost of goods manufactured during the year is:
Student Answer:
$850,000.
$348,000.