Barefoot Running Company's work in process inventory on June 1 has a balance of $ 22 comma 800$22,800 representing Job No. 265. During June, $ 50 comma 000$50,000 of direct materials were requisitioned for Job No. 265 and $ 35 comma 000$35,000 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 115115 % of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $ 41 comma 400$41,400. No new jobs were started during June. Job No. 265 is completed on June 28. What is the total cost assigned to Job No. 265?

Question

Business

Xzavier Hess

27 December, 06:45

Barefoot Running Company's work in process inventory on June 1 has a balance of $ 22 comma 800$22,800 representing Job No. 265. During June, $ 50 comma 000$50,000 of direct materials were requisitioned for Job No. 265 and $ 35 comma 000$35,000 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 115115 % of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $ 41 comma 400$41,400. No new jobs were started during June. Job No. 265 is completed on June 28. What is the total cost assigned to Job No. 265?

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Answers (1)

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Misha · Answer 1

The total cost assigned to Job No. 265 is $148,050

Explanation:

The computation of the total cost is shown below:

= Beginning balance of work in progress inventory + direct material cost + direct labor cost + manufacturing overhead cost

= $22,800 + $50,000 + $35,000 + $40,250

= $148,050

The manufacturing overhead cost is computed by

= Direct labor cost * allocation percentage

= $35,000 * 115%

= $40,250