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: $ 46,000 $ 21,000 $297,000 $ 73,000 $ 35,000 $ 89,000 $306,000 $ 29,000 $285,000 $ 37,000 Sales commissions CEO's salary Advertising Depreciation, factory equipment Direct materials purchased Production supervisor's salary Indirect materials $54,000 $42,000 Rent Insurance, factory building. Direct labor Factory utilities Depreciation, copier in sales office July 31 $81,000 $26,000 $69,000 $ 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: $ 46,000 $ 21,000 $297,000 $ 73,000 $ 35,000 $ 89,000 $306,000 $ 29,000 $285,000 $ 37,000 Sales commissions CEO's salary Advertising Depreciation, factory equipment Direct materials purchased Production supervisor's salary Indirect materials $54,000 $42,000 Rent Insurance, factory building. Direct labor Factory utilities Depreciation, copier in sales office July 31 $81,000 $26,000 $69,000 $ 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
Problem 1Q
Related questions
Question
Jigu2
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
Direct materials
Work in process
Finished goods
During July, Adding Company incurred the following costs:
$ 46,000
$ 21,000
$297,000
$ 73,000
$ 35,000
$ 89,000
$306,000
$ 29,000
$285,000
$ 37,000
$ 22,000
$ 60,000
Sales commissions
CEO's salary
Advertising
Depreciation, factory equipment
Direct materials purchased
Production supervisor's salary
Indirect materials
$54,000
$42,000
Rent
Insurance, factory building.
Direct labor
Factory utilities
Depreciation, copier in sales office
July 31
$81,000
$26,000
$69,000
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education