Schedule of Cost of Goods Manufactured
Response to the following problem:
Cisneros Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of July, the firm processed three jobs: A12, C46, and M24, of which A12 was started in June.
Inventories
Direct materials
|
July 1
$42,500
|
July 31
?
|
|
Work in process
|
54,000
|
?
|
|
Finished goods
|
75,000
|
$196,080
|
|
Cost of Goods Sold, July
|
$ ?
|
|
|
Direct materials purchased in July
|
45,000
|
|
|
Issued to production: Job A12
|
21,340
|
|
|
Job C46
|
26,000
|
|
|
Job M24
|
16,000
|
|
|
Factory labor hours used ($30/hour):
|
|
|
|
Job A12
|
2,800
|
|
|
Job C46
|
3,800
|
|
|
Job M24
|
1,700
|
|
|
Indirect labor
|
6,900
|
|
|
Other factory overhead costs incurred:
|
|
|
|
Rent
|
$129,500
|
|
|
Utility
|
188,600
|
|
|
Repairs and maintenance
|
194,600
|
|
|
Depreciation
|
127,100
|
|
|
Other
|
176,600
|
As of July 31, Job A12 was sold and Jobs C46 and M24 were still in processing. Total factory overhead applied in July was $896,400.
Required:
1. Compute the predetermined factory overhead rate.
2. Compute the amount of materials inventory at the end of July.
3. Compute the actual factory overhead cost incurred during the month of July.
4. Compute the ending balance of the work-in-process inventory account for July.
5. Prepare the statement cost of goods manufactured for July.
6. Compute the amount of over- or under-applied overhead.
7. What is the cost per unit of Job A12 if it has a total of 100 units?
8. Prepare the statement of cost of goods sold for July.