Question

Border Designs manufactures custom tiles and applies job-order costing. The following information relates to the fiscal year ending December 31, 2011.

Beginning balance in Raw Materials Inventory    $ 12,500

Purchases of raw material                                        189,000

Ending balance in Raw Materials Inventory    14,300

Beginning balance in Work in Process                      24,500

Ending balance in Work in Process                           23,100

Direct labor cost                  89,700

Manufacturing overhead applied                              65,300

Actual manufacturing overhead                               64,100

Beginning balance in Finished Goods                     28,900

Ending balance in Finished Goods                          24,300

Sales                                   432,000

Selling expenses                 120,000

General and administrative expenses                      86,000

How much is the cost of goods manufactured?

Answer 1

Border Designs

Cost of goods manufactured

Particulars	$	$
Beginning balance in Raw Materials Inventory	12,500
Add: Purchases of raw materials	189,000
Less: Ending balance in Raw Materials Inventory	14,300
Direct Materials used in production		187,200
Direct Labor cost		89,700
Manufacturing overhead applied		65,300
Total Manufacturing costs		342,200
Add: Beginning balance in Work in Process		24,500
Less: Ending balance in Work in Process		23,100
Cost of goods manufactured		343,600

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