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Manufacturing Overhead Assigned to products

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 moh 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

Solution Preview

a) calculate budgeted moh for the month.

The rate 300% is : budget / budgeted labor = 300% (or 3)
budget / 30,000 = 3
budget = 90,000

b) calculate the cost assigned to job #11 in march and the total cost of job #11

Job 11:

beginning $40,000
material ...

Solution Summary

Computations done for you with a few comments added so you know why certain costs were included or left off.

$2.19