Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1 December 31 Direct materials $ 80,000 $ 43,000 Work in process 69,000 45,000 Finished goods 118,000 103,000 Other information Direct materials purchases $ 327,000 Cost of goods available for sale 956,000 Actual factory overhead costs 263,000 The cost of goods manufactured during the year is:

Question

Maximillian

Business

29 April, 04:44

Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1 December 31 Direct materials $ 80,000 $ 43,000 Work in process 69,000 45,000 Finished goods 118,000 103,000 Other information Direct materials purchases $ 327,000 Cost of goods available for sale 956,000 Actual factory overhead costs 263,000 The cost of goods manufactured during the year is:

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Answers (1)

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Isabel Greene · Answer 1

The cost of goods manufactured during the year is $838,000

Explanation:

The computation of the cost of goods manufactured is shown below:

= Cost of goods available for sale - Beginning finished goods inventory

= $956,000 - $118,000

= $838,000

The other items which are given in the question are not relevant. So, these items are ignored and hence, not considered in the computation part.