Carla Vista Manufacturing Company makes specialty tools. In January, Carla Vista incurs manufacturing costs of $12,480,000 for direct material, direct labor, and overhead. 20% of the total costs represents overhead applied. The overhead rate is $1 for every $2 of direct labor costs incurred. Inventory balances were: Raw Materials Work in Process Finished Goods January 1 $288,000 576,000 384,000 January 31 $480,000 384,000 192,000 At the end of January, there was $960 of overapplied overhead.
Carla Vista Manufacturing Company makes specialty tools. In January, Carla Vista incurs manufacturing costs of $12,480,000 for direct material, direct labor, and overhead. 20% of the total costs represents overhead applied. The overhead rate is $1 for every $2 of direct labor costs incurred. Inventory balances were: Raw Materials Work in Process Finished Goods January 1 $288,000 576,000 384,000 January 31 $480,000 384,000 192,000 At the end of January, there was $960 of overapplied overhead.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Determine the cost of raw materials purchased in January.
Raw materials purchases
$
CARLA VISTAMANUFACTURING COMPANY
Cost of Goods Manufactured Schedule
$
V
$
$
Transcribed Image Text:Carla Vista Manufacturing Company makes specialty tools. In January, Carla Vista incurs manufacturing costs of $12,480,000 for
direct material, direct labor, and overhead. 20% of the total costs represents overhead applied. The overhead rate is $1 for every $2 of
direct labor costs incurred. Inventory balances were:
Raw Materials
Work in Process
Finished Goods
January 1
$288,000
576,000
384,000
January 31
$480,000
384,000
192,000
At the end of January, there was $960 of overapplied overhead.
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