Determine the cost of raw materials purchased in january

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Question - Jensen Manufacturing Company makes specialty tools. In January, Jensen incurs manufacturing costs of $13,000,000 for direct materials, direct labor, and overhead. 20% of the total costs represents overhead applied. The overhead rate is $1 for every $2 of direct labor costs incurred. Inventory balances were:

 

January 1

January 31

Raw materials

$300,000

$500,000

Work in process

600,000

400,000

Finished goods

400,000

200,000

At the end of January, there was $1,000 of overapplied overhead.

Required -

(a) Determine the cost of raw materials purchased in January.

(b) Prepare a cost of goods manufactured schedule for January 2017.

(c) Compute the cost of goods sold for January.

Reference no: EM133165061

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