Question

Under Eagle Co.'s job costing system, manufacturing overhead is applied to Work-in-Process using a predetermined annual overhead rate. During February, Eagle's transactions included the following:

Direct materials issued to production $96,000
Indirect materials issued to production 14,000
Manufacturing overhead incurred 131,000
Manufacturing overhead applied 119,000
Direct labor costs 113,000

Eagle had neither beginning nor ending inventory in Work-in-Process Inventory. What was the cost of jobs completed in February? (CPA adapted)

a. 340,000
b. 328,000

Answer 1

b. 328,000

Step-by-step explanation:

The cost of jobs completed in February.

= DM+ OH applied + DL

$96,000 + $119,000 + $113,000 = = $328,000.