Question

X Corporation reported the following data for the month of August: Inventories: Beginning Ending Raw materials $36,000 $24,000 Work in process $23,000 $17,000 Finished goods $37,000 $55,000 Additional information: Budgeted manufacturing overhead cost $672,000 Budgeted direct labor cost $1,680,000 Raw materials purchased $79,000 Manufacturing overhead cost incurred $51,975 Indirect materials included in manufacturing overhead cost incurred $8,000 Manufacturing overhead cost applied to Work in Process using direct labor cost 37800 Job #82 started in August Direct materials used $4,000 Direct labor cost $6,000 Round your answers to the nearest dollar. Fill in the blank without $ or comma or period, e.g., 12345 What was Job# 82's total manufacturing cost in August using normal costing?

Answer 1

$12,400

Explanation:

The computation of Job 82's total manufacturing cost in August using normal costing us shown below:-

Overhead rate = Budgeted Overhead ÷ Budgeted Labor cost

= $672,000 ÷ 1,680,000

= 40%

Applied overhead = 6000 × 40%

= 2,400

The Total cost of Job 82 = Direct material + Direct labor + Overhead applied

= $4,000 + $6,000 + $2,400

= $12,400