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    Madtack , Lee Co , Smalling , COGS

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    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

    © BrainMass Inc. brainmass.com October 10, 2019, 3:17 am ad1c9bdddf
    https://brainmass.com/business/purchases-inventory-and-cogs/madtack-lee-co-smalling-cogs-414372

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    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