Question

The following information is available for completed Job No. 402: Direct materials, $150,000; direct labor $190,000; manufacturing overhead applied, $80,000; units produced, 6,000 units; units sold, 5,000 units. The cost of the finished goods on hand from this job is?

At 19,000 direct labor hours, the flexible budget for indirect materials is $54,000. If $40,400 are incurred at 20,400 direct labor hours, the flexible budget report should show the following difference for indirect materials (show your work):

What is the formula to calculate cost of good sold?

Answer 1

ans
Total product cost
Direct Material	$150,000
Direct Labor	190000
Manufacturing Overhead	80000
Total product cost A	$420,000
No. of units produced B	6000
Cost per unit A/B	$70
ans
Cost of Finished Goods on hand ($70*1000)	70000
Cost of good sold (70*5000)	350000
ans
Flexible budget rate per hour
54000/19000	2.84
for 20400 hours flexible budget amt is
20400*2.84	57979
Less: Actual direct labor cost	40400
Spending Variance	17579	F
	17580	F
Formula to calculate COGS
Opening Inventory+Units produced-Ending Inventory