Determine the cost of goods manufactured

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Reference no: EM132215327

Question - Highland Co. is a job-order-costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year.

Activity	Cost	Driver	Amount of driver
setups	$120,000	number of setups	6,000
purchasing	$80,000	number of parts	20,000
other overhead	$150,000	direct labor hours	75,000

The following information about the jobs was given for January.

	Job 1001	Job 1002	Job 1003	Job 1004
Balance I/I	$44,900	$60,700	$0	$0
direct materials	$54,000	$37,000	$25,000	$41,000
direct labor	$80,000	$38,500	$43,000	$71,000
number of setups	40	10	30	200
number of parts	300	180	400	500
direct labor hours	5,000	2,400	5,200	1,200
Units	2,000	1,500	800	1,800

By January 31, Jobs 1001 and 1004 were completed and only Job 1004 was sold. The remaining jobs were still in process.

(1) Calculate three activity rates.

(2) Calculate the overhead cost per unit for Job 1004.

(3) Determine the cost per unit for Jobs 1001 and 1004.

(4) Calculate the beginning balance and ending balance of work-in-process for January.

(5) Determine the cost of goods manufactured.

(6) Calculate the cost of goods sold.

(7) Prepare all necessary journal entries pertaining Job 1001, Job 1002, Job 1003, and Job 1004.

Reference no: EM132215327

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