A subsidiary of Puget Concrete, PugetBricks, manufactures custom bricks and appl

Question

A subsidiary of Puget Concrete, PugetBricks, manufactures custom bricks and applies job-order costing. The following information relates to the fiscal year ending December 31, 2017. Amount $ Beginning balance in Raw Materials Inventory 13,600 Purchases of raw material 211,000 Ending balance in Raw Materials Inventory 15,100 Beginning balance in Work in Process 18,700 Ending balance in Work in Process 16,500 Direct labor cost 78,600 Manufacturing overhead applied 47,900 Actual manufacturing overhead 44,800 Beginning balance in Finished Goods 26,200 Ending balance in Finished Goods 24,500 Sales 421,000 Selling expenses 115,400 General and administrative expenses 75,900 Required (a): How much is the cost of direct materials transferred into production? Required (b): How much is the cost of goods manufactured?

Explanation / Answer

a Direct materials transferred into production =13600+211000-15100= 209500 b Beginning balance in Work in Process 18700 Direct materials 209500 Direct labor cost 78600 Manufacturing overhead applied 47900 Total manufacturing costs 336000 Total costs of work in process 354700 Less:Ending balance in Work in Process 16500 Cost of goods manufactured 338200

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