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Integrated Decisions Corp - cost accounting calculations

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Integrated Decisions Corp applies overhead to jobs at a rate of 120 percent of direct labor cost. On December 31, 2006, a flood destroyed many of the firm's cost records leaving only the following information:

Direct Material Inventory Work in Process Inventory
Beg balance 12,300 Beg balance 28,000
Purchases ? ? Direct
Material ?
Direct labor 90,000
Overhead ?
?
4,100 24,000

Finished Goods Inventory Cost of Good Sold
Beg balance 45,000 ?
Goods
Completed ? 685,000

42,000

As the cost accountant of integrated decisions, you must find the following for 2006

a. Cost of goods sold
b. Cost of goods manufactured
c. Amount of overhead applied to production
d. Cost of direct material used.
e. Cost of direct material purchased.

Job No. Direct Material Direct labor Applied Overhead Total Cost
167 $17,703 $6,920 $7,960 $32,583
169 54,936 7,240 8,328 70,504
170 1,218 2,000 2,300 5,518
171 154,215 28,500 ? ?
172 28,845 2,200 2,532 33,577

a. What predetermined overhead rate does Romano Construction use
b. What was the total cost of beginning Work in Process Inventory?
c. What were total direct manufacturing costs incurred for May
d. What was cost of goods manufactured for May?

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Integrated Decisions Corp. Applies overhead to jobs at a rate of 120 percent of direct labor cost. On December 31, 2006, a flood destroyed many of the firm's cost records leaving only the following information:

Direct Material Inventory Work in Process Inventory
Beg balance 12,300 Beg balance 28,000
Purchases ? ? Direct
Material ?
Direct labor 90,000
Overhead ?
?
4,100 24,000

Finished Goods Inventory ...

Solution Summary

The solution explains how costs move under the job order costing system and the calculation for direct material used, cost of goods manufactured, cost of ending inventory.

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