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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