107k views
4 votes
Raw materials were purchased on account, $510,000. Raw materials used in production, $480,000. All of of the raw materials were used as direct materials. The following costs were accrued for employee services: direct labor, $600,000; indirect labor, $150,000; selling and administrative salaries, $240,000. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $367,000. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $500,000. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year. Jobs were sold on account to customers during the year for a total of $2,800,000. The jobs cost $1,690,000 to manufacture according to their job cost sheets. 4. What is the total amount of manufacturing overhead applied to production during the year

User Swineone
by
4.9k points

1 Answer

5 votes

Answer:

$70,000

Explanation:

The computation of the total amount of manufacturing overhead applied to production during the year is shown below:-

Total amount of manufacturing overhead = Beginning balance + Purchase raw material - Raw materials used in production

= $40,000 + $510,000 - $480,000

= $70,000

Therefore for computing the total amount of Raw materials used in production we simply applied the above formula.

Raw materials were purchased on account, $510,000. Raw materials used in production-example-1
User BluePeppers
by
5.1k points