Question - Birmingham Bowling Ball Company (BBBC) uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 20x3, consisted of one job (no. 3088), which was carried on the year-end balance sheet at $78,400. There was no finished-goods inventory on this date.
BBBC applies manufacturing overhead to production on the basis of direct-labor cost. Budgeted totals for 20x4 for direct labor and manufacturing overhead are $2,100,000 and $2,730,000, respectively.
Actual results for the year follow.
Job no. 3088 was completed in January 20x4; there was no work in process at year-end. All jobs produced during 20x4 were sold with the exception of job no. 3154, which contained direct-material costs of $78,000 and direct-labor charges of $42,500. BBBC charges any under- or overapplied overhead to Determine BBBC's 20x4 cost of goods sold.
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Information Needed:
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Direct material
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$2,800,000.00
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Direct labor
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$2,175,000.00
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Indirect material
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$32,500.00
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Indirect labo
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$1,430,000.00
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Factory depreciation
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$870,000.00
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Factory insurance
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$29,500.00
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Factory utilities
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$415,000.00
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Selling and administrative expenses
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$1,080,000.00
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Total
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$8,832,000
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