Share
Explore BrainMass

Madtack , Lee Co , Smalling , COGS

See attached file for proper format of tables.

4. Madtack Company's beginning and ending inventories for the month of November were as follows:

November 1 November 30
Direct Materials $68,500 $61,400
Work in Process $147,000 $164,000
Finished Goods $86,600 $77,100

Production data for month follow:

Direct labor cost incurred $204,000
Actual manufacturing overhead cost incurred $131,000
Direct materials purchases $165,700

Madtack applies manufacturing overhead cost to jobs at the rate of 62% of direct labor cost incurred. The company does not close underapplied or overapplied manufacturing overhead to Cost of Goods Sold until the end of the year.

Madtack Company's Cost of Goods Sold for November was:

a.$486,280

b.$502,780

c.$495,780

d $493,780

5. The Lee Company uses a job-order costing system. The following data were recorded for June:

Added During June
Job Number June 1 Work in Process Inventory Direct Materials Direct Labor
235 $2,690 $790 $480
236 $1,590 $940 $1,000
237 $1,080 $1,400 $1,860
238 $850 $1,550 $2,350

Overhead is charged to production at 60% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers.

Lee Company's cost of goods sold for June was:

a. $10,554

b. $15,904

c. $10,114

d. $15,294

6. Smalling Inc. has provided the following data for the month of November:
Inventories: Beginning Ending
Work in process $19,600 $9,800
Finished goods $48,000 $57,800

Additional information
Direct material $76,800
Direct labor cost $97,000
Manufacturing overhead cost incurred $47,300
Manufacturing overhead cost applied to Work in process $45,500

The adjusted cost of goods sold that appears on the income statement for November is:

a. $219,300

b. $229,100

c. $221,100

d. $244,100

Attachments

Solution Preview

See attached Excel file.

4. Madtack Company's beginning and ending inventories for the month of November were as follows:

November 1 November 30
Direct Materials $68,500 $61,400
Work in Process $147,000 $164,000
Finished Goods $86,600 $77,100

Production data for month follow:

Direct labor cost incurred $204,000
Actual manufacturing overhead cost incurred $131,000
Direct materials purchases $165,700

Madtack applies manufacturing overhead cost to jobs at the rate of 62% of direct labor cost incurred. The company does not close underapplied or overapplied manufacturing overhead to Cost of Goods Sold until the end of the year.

Madtack Company's Cost of Goods Sold for November was:

a.$486,280
b.$502,780
...

Solution Summary

Your tutorial shows you how these accounts work, puts in given amounts and then solve it for you. Every answer has an explanation to support the choice made.

$2.19