Problem - Hacken Company has a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined rate based on direct labor cost. The information below has been taken from the cost records of Hacken Company for the past year:
Direct materials used in production $1,250
Total manufacturing costs charged to production $6,050 during the year (includes DM, DL, and applied MOH)
Manufacturing overhead applied $2,800
S & A expenses $1,000
Inventories:
Direct materials, Jan.1 $130
Direct materials, Dec 31 $80
WIP, Jan. 1 $250
WIP, Dec. 31 $400
Finished goods Jan.1 $300
Finished goods, Dec. 31 $200
Required:
1. Compute the cost of direct materials purchased during the year?
2. Compute the predetermined rate that was used during the year?
3. Compute the cost of goods manufactured for the past year?
4. Compute the COGS for the past year during the year (includes DM, DL, and applied MOH)?