Under Eagle Co.'s job order costing system, manufacturing overhead is applied to Work-in-Process using a predetermined annual overhead rate. During February, Eagle's transactions included the following:

Direct materials issued to production

$

96,000

Indirect materials issued to production

14,000

Manufacturing overhead incurred

131,000

Manufacturing overhead applied

119,000

Direct labor costs

113,000

Eagle had neither beginning nor ending inventory in Work-in-Process Inventory. What was the cost of jobs completed in February? (CPA adapted)

A. 340,000

B. 328,000

Question

Charlize

Business

30 December, 08:51

Under Eagle Co.'s job order costing system, manufacturing overhead is applied to Work-in-Process using a predetermined annual overhead rate. During February, Eagle's transactions included the following:

Direct materials issued to production

$

96,000

Indirect materials issued to production

14,000

Manufacturing overhead incurred

131,000

Manufacturing overhead applied

119,000

Direct labor costs

113,000

Eagle had neither beginning nor ending inventory in Work-in-Process Inventory. What was the cost of jobs completed in February? (CPA adapted)

A. 340,000

B. 328,000

+5

Answers (1)

Know the Answer?

Talia Stout · Answer 1

B. 328,000

Explanation:

The computation of the cost of jobs completed is shown below:

= Direct materials issued to production + Direct labor costs + Manufacturing overhead applied

= $96,000 + $113,000 + $119,000

= $328,000

We simply added the direct material issued, direct labor cost and the manufacturing overhead applied so that the accurate amount can come

All other information which is given is not relevant. Hence, ignored it