Problem:
You use a normal job order cost system, in which manufacturing overhead is assigned to products using a single monthly-predetermined moh rate based on direct labor cost. for the month of March, the budgeted moh rate is 300% of direct labor cost.
Budgeted direct labor cost was $30,000. Beginning inventory was:
Beginning work in process $40,000 (related solely to job #11)
Beginning finished goods $104,000 (related solely to job #10)
During the month, job #10 was sold. job # 11 was finished, but not sold. no new jobs were put into production. costs incurred in finishing the job were; $80,000 for direct materials and $44,000 for direct labor. actual moh incurred in finishing job #11 was $110,000.
a) calculate budgeted for the month.
b) calculate the cost assigned to job #11 in march and the total cost of job #11
c) calculate the ending balance in the work in process and finished goods inventory accounts
d) calculate the cost of goods manufactured and the cost of goods sold for march