Adding Company applies overhead costs to products based on a pre-determined overhead rate of 80% of direct labor cost. During July, Adding Company reported the following inventory balances: July 1 $37,000 Direct materials Work in process Finished goods During July, Adding Company incurred the following costs: Advertising .... Depreciation, factory equipment Direct materials purchased Production supervisor's salary Indirect materials ... Rent $54,000 $42,000 Sales commissions CEO's salary .... Insurance, factory building. Direct labor Factory utilities Depreciation, copier in sales office July 31 $81,000 $26,000 $69,000 $ 46,000 $ 21,000 $297,000 $ 73,000 $ 35,000 $ 89,000 $306,000 $ 29,000 $285,000 $ 37,000 $ 22,000 $ 60,000 Forty-five percent of the rent relates to the factory while fifty-five percent of the rent relates to the administrative building. Calculate Adding Company's cost of goods manufactured for July.
Adding Company applies overhead costs to products based on a pre-determined overhead rate of 80% of direct labor cost. During July, Adding Company reported the following inventory balances: July 1 $37,000 Direct materials Work in process Finished goods During July, Adding Company incurred the following costs: Advertising .... Depreciation, factory equipment Direct materials purchased Production supervisor's salary Indirect materials ... Rent $54,000 $42,000 Sales commissions CEO's salary .... Insurance, factory building. Direct labor Factory utilities Depreciation, copier in sales office July 31 $81,000 $26,000 $69,000 $ 46,000 $ 21,000 $297,000 $ 73,000 $ 35,000 $ 89,000 $306,000 $ 29,000 $285,000 $ 37,000 $ 22,000 $ 60,000 Forty-five percent of the rent relates to the factory while fifty-five percent of the rent relates to the administrative building. Calculate Adding Company's cost of goods manufactured for July.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Adding Company applies overhead costs to products based
on a pre-determined overhead rate of 80% of direct labor
cost. During July, Adding Company reported the following
inventory balances:
July 1
$37,000
$54,000
$42,000
Direct materials
Work in process
Finished goods
During July, Adding Company incurred the following costs:
Advertising
Depreciation, factory equipment
Direct materials purchased
Production supervisor's salary
Indirect materials
Sales commissions
CEO's salary
Insurance, factory building.
Direct labor
Factory utilities
Depreciation, copier in sales office
Rent
July 31
$81,000
$26,000
$69,000
$ 46,000
$ 21,000
$297,000
$ 73,000
$ 35,000
$ 89,000
$306,000
$ 29,000
$285,000
$ 37,000
$ 22,000
$ 60,000
Forty-five percent of the rent relates to the factory
while fifty-five percent of the rent relates to the
administrative building.
Calculate Adding Company's cost of goods manufactured
for July.
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