Connecticut Manufacturing began business on January 1
During its first year of operation, Connecticut worked on five industrial jobs and reported the following information at year-end:
Job 1 Job 2 Job 3 Job 4 Job 5
Direct Materials 2,300 7,900 4,000 3,500 1,500
Direct Labor 14,000 23,000 13,000 12,000 800
Allocated Mfg. Overhead 1,600 6,500 2,500 7,500 200
Job completed: Jun 30 Sep 1 Oct 15 Nov 1 Not completed
Job sold: Jul 10 Sep 12 Not sold Not sold N/A
Revenues: 47,000 41,000 N/A N/A N/A
Connecticut's allocation of overhead costs left a debit balance of $1,400 in the Manufacturing Overhead account, which was adjusted to zero at year-end. What was the final balance in Cost of Goods Sold for the year ended December 31?
A) $55,300
B) $56,700
C) $53,900
D) $17,900
B .B)
Cost of Goods Sold:
Job 1 ($2,300 + $14,000 + $1,600 ) $17,900
Job 2 ($7,900 + $23,000 + $6,500 ) 37,400
Underallocated overhead costs 1,400
Balance in Cost of Goods Sold $56,700
You might also like to view...
Which of these statements best describes a learning management system
a. A secure website, hosted by the school, that provides a variety of information b. A document prepared by a faculty member to help you understand the requirements of a specific course c. A way of organizing your behavior to assure maximum personal and professional productivity d. A self-management tool that allows you to take an honest look at yourself—your traits, skills, and accomplishments
At the beginning of the year, Tea Tree Manufacturing had the following account balances
Work-in-Process Inventory 2,000 Finished Goods Inventory 8,000 Manufacturing Overhead 0 Cost of Goods Sold 0 Sales Revenue 0 The following additional details are provided for the year: Direct materials placed in production $81,100 Direct labor incurred 191,400 Manufacturing overhead incurred 301,800 Manufacturing overhead allocated to production 295,000 Cost of jobs completed and transferred 501,500 The unadjusted balance in the Manufacturing Overhead account is a ________. A) credit of $295,000 B) credit of $6,800 C) debit of $6,800 D) debit of $301,800