Reference no: EM132482369
Point 1: East Coast Colorworks produces modular office space units. The company uses a job order costing system to accumulate product costs. Because much of the production process is automated, East Coast has selected machine hours as its overhead application rate.
Point 2: In October, East Coast worked on four jobs. Job 105 and Job 106 were started in September and completed and delivered to customers in October. Job 107 and Job 108 were started in October and Job 107 was finished but has yet to be sold.
The relevant data for September and October are:
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lob 105
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lob 306 lob 107
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lob 108
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Costs added September:
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Direct materials
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$25,000
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10,000
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Direct labor
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$36000
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4,000
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Mfg. Overhead
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$40 ,000
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$ 500
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Machine Hours
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1,600 MH
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20 MH
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Costs added In
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October:
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Direct materials
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$
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$ 9,000I S 8,000
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$ 4.000
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Direct labor
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8.000
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$ 28000 $12,000
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$ 500
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Machine Hours
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120 MH
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500 MH 325 MH
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45 MH
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Question a) Calculate the predetermined overhead rate used by East Coast.
Question b) Calculate the total manufacturing cost for October.
Question c) Calculate the total cost for each of the five jobs as of October 31.
Question d) Calculate the cost of goods manufactured for October.
Question e) Calculate the balance in the Work in Progress Inventory account as of October 31.
Question f) Calculate the Cost of Goods Sold for October.
Question g) Calculate the balance in the finished goods Inventory account as of October 31.