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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What is the cost of goods manufactured in October?
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)
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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