he following information applies to the questions displayed

he following information applies to the questions displayed below veeten Company had no jobs in progress at the beginning of March and no beginning inventories. It arted only two jobs during March-Job P and Job Q. Job P was completed and sold by the end of the arch and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined erhead rate based on direct labor-hours. The following additional information is available for the company a whole and for Jobs P and O (all data and questions relate to the month of March): stimated total fixed manufacturing overhead stimated variable manufacturing overhead per direct iabor-hour stimated total direct labor-hours to be worked otal actual manufacturing overhead costs incurred $ 14.000 $ 1.40 3,500 $ 19.000 Direct materials Direct labor cost Actual dhrect lelbor-hours worked Job P Job Q s 15.000 $ 9.500 s 52 000 s 15.000 2600 750

Solution

Schedule of Cost Of Goods Manufactured Cost Calculation Amount Amount Direct Materials: Job P 15,000 Job Q 9,500 Total Raw Material Available 24,500 A Raw Material Used In Production Job P 15,000 Job Q 9500-2500 7,000 22,000 B Total Manufacturing Cost Direct Labour cost Job P 52,000 JobQ 15,000 67,000 C Fixed Manufacturing OH 14,000 D Variable OH Cost Job P 2600*1.4 3,640 Job Q ( 7000*750/9500) 552*1.4 773 4,413 E Cost of Goods Manufactured A+B+C+D+E 1,31,913