Grass Reed Bayou is a bottling company in The Netherlands. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,000, and management budgeted $320,000 of direct labor costs. During the year, the company incurred the following actual costs.Direct materials used$ 382,000Direct labor313,000Factory overhead650,700The January 1 balances of inventory accounts are shown below.Materials-all direct$ 64,000Work-in-process41,400Finished goods25,600The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year.The cost of goods manufactured during the year is:

Step 1: Total Manufacturing CostsThe total manufacturing costs consist of:Direct materials…

Answered: Grass Reed Bayou is a bottling company…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 1CMA: Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A...

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Grass Reed Bayou is a bottling company in The Netherlands. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,000, and management budgeted $320,000 of direct labor costs. During the year, the company incurred the following actual costs.