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Shown below are the direct cost data related to jobs started in October: Job 26 Job 27 Job 28 Total Direct materials $5,180 $5,600 $4,200 $14,980 Direct labour $11,200 $9,340 $5,910 $26,450 Number of units 20 30 20 Other information: 1. Direct materials and direct labour added to beginning work in process in October were as follows: Job 22 Job 24 Job 25 Total Direct materials $1,150 $610 $1,500 $3,260 Direct labour 3,000 4,500 5,500 13,000 2. Overhead is applied at a predetermined rate based on the direct labour cost. 3. Actual expenses for October were as follows: Supervisory salaries $6,000 Supplies (factory) $2,100 Factory rent 5,000 Selling expenses 8,500 Depreciation (machines) 5,000 Property tax and insurance 2,250 Indirect labour 4,000 CPP, EI, and other benefits 4,200 * 80% of employer contributions and benefits relate to factory personnel. 4. Purchases of direct materials (raw materials) during October amounted to $28,500. Indirect materials (supplies) are handled in a separate account. 5. Only Jobs 27 and 28 are still in process at closing on October 31. Finished goods consisted only of Job No. 25 at month end. 6. Avid writes off any under- and over-applied overhead to Cost of Goods Sold in the month in which it is incurred.

Shown below are the direct cost data related to jobs started in October: Job 26 Job 27 Job 28 Total Direct materials $5,180 $5,600 $4,200 $14,980 Direct labour $11,200 $9,340 $5,910 $26,450 Number of units 20 30 20 Other information: 1. Direct materials and direct labour added to beginning work in process in October were as follows: Job 22 Job 24 Job 25 Total Direct materials $1,150 $610 $1,500 $3,260 Direct labour 3,000 4,500 5,500 13,000 2. Overhead is applied at a predetermined rate based on the direct labour cost. 3. Actual expenses for October were as follows: Supervisory salaries $6,000 Supplies (factory) $2,100 Factory rent 5,000 Selling expenses 8,500 Depreciation (machines) 5,000 Property tax and insurance 2,250 Indirect labour 4,000 CPP, EI, and other benefits 4,200 * 80% of employer contributions and benefits relate to factory personnel. 4. Purchases of direct materials (raw materials) during October amounted to $28,500. Indirect materials (supplies) are handled in a separate account. 5. Only Jobs 27 and 28 are still in process at closing on October 31. Finished goods consisted only of Job No. 25 at month end. 6. Avid writes off any under- and over-applied overhead to Cost of Goods Sold in the month in which it is incurred.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter4: Job-order Costing And Overhead Application
Section: Chapter Questions
Problem 47E: Cost Flows Consider the following independent jobs. Overhead is applied in Department 1 at the rate...
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What is the cost of goods manufactured in October?

Shown below are the direct cost data related to jobs started in October: Job 26 Job 27 Job 28 Total Direct materials $5,180 $5,600 $4,200 $14,980 Direct labour $11,200 $9,340 $5,910 $26,450 Number of units 20 30 20 Other information: 1. Direct materials and direct labour added to beginning work in process in October were as follows: Job 22 Job 24 Job 25 Total Direct materials $1,150 $610 $1,500 $3,260 Direct labour 3,000 4,500 5,500 13,000 2. Overhead is applied at a predetermined rate based on the direct labour cost. 3. Actual expenses for October were as follows: Supervisory salaries $6,000 Supplies (factory) $2,100 Factory rent 5,000 Selling expenses 8,500 Depreciation (machines) 5,000 Property tax and insurance 2,250 Indirect labour 4,000 CPP, EI, and other benefits* 4,200 * 80% of employer contributions and benefits relate to factory personnel. 4. Purchases of direct materials (raw materials) during October amounted to $28,500. Indirect materials (supplies) are handled in a separate account. 5. Only Jobs 27 and 28 are still in process at closing on October 31. Finished goods consisted only of Job No. 25 at month end. 6. Avid writes off any under- and over-applied overhead to Cost of Goods Sold in the month in which it is incurred. (a)
Transcribed Image Text:Shown below are the direct cost data related to jobs started in October: Job 26 Job 27 Job 28 Total Direct materials $5,180 $5,600 $4,200 $14,980 Direct labour $11,200 $9,340 $5,910 $26,450 Number of units 20 30 20 Other information: 1. Direct materials and direct labour added to beginning work in process in October were as follows: Job 22 Job 24 Job 25 Total Direct materials $1,150 $610 $1,500 $3,260 Direct labour 3,000 4,500 5,500 13,000 2. Overhead is applied at a predetermined rate based on the direct labour cost. 3. Actual expenses for October were as follows: Supervisory salaries $6,000 Supplies (factory) $2,100 Factory rent 5,000 Selling expenses 8,500 Depreciation (machines) 5,000 Property tax and insurance 2,250 Indirect labour 4,000 CPP, EI, and other benefits* 4,200 * 80% of employer contributions and benefits relate to factory personnel. 4. Purchases of direct materials (raw materials) during October amounted to $28,500. Indirect materials (supplies) are handled in a separate account. 5. Only Jobs 27 and 28 are still in process at closing on October 31. Finished goods consisted only of Job No. 25 at month end. 6. Avid writes off any under- and over-applied overhead to Cost of Goods Sold in the month in which it is incurred. (a)
Avid Assemblers uses normal job-order costing to assign costs to products. The company assembles and packages 25 different products according to customer specifications. Products are worked on in batches of 20 to 40 units. Each batch is given a job number. On October 1, the company had the following balances: Raw materials $9,800 Work in process 65.847 Finished goods 30,640 Work in process consisted of the following jobs: Job 22 Job 24 Job 25 Direct materials $6,200 $5,190 $4,800 Direct labour 10,500 9,210 9,500 Applied overhead 7,350 6,447 6,650 Total $24,050 $20,847 $20,950 Number of units 20 40 30 Finished goods consisted of Job 23, with the following costs: Job 23 Direct materials $8,200 Direct labour 13,200 Applied overhead 9.240 Total $30,640 Number of units 50 Shown below are the direct cost data related to jobs started in October: Job 27 Job 28 Total Job 26 $5,180 Direct materials $5,600 $4,200 $14,980
Transcribed Image Text:Avid Assemblers uses normal job-order costing to assign costs to products. The company assembles and packages 25 different products according to customer specifications. Products are worked on in batches of 20 to 40 units. Each batch is given a job number. On October 1, the company had the following balances: Raw materials $9,800 Work in process 65.847 Finished goods 30,640 Work in process consisted of the following jobs: Job 22 Job 24 Job 25 Direct materials $6,200 $5,190 $4,800 Direct labour 10,500 9,210 9,500 Applied overhead 7,350 6,447 6,650 Total $24,050 $20,847 $20,950 Number of units 20 40 30 Finished goods consisted of Job 23, with the following costs: Job 23 Direct materials $8,200 Direct labour 13,200 Applied overhead 9.240 Total $30,640 Number of units 50 Shown below are the direct cost data related to jobs started in October: Job 27 Job 28 Total Job 26 $5,180 Direct materials $5,600 $4,200 $14,980
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