Reference no: EM133104580
Question - Swanson Therapeutics manufactures anti-fatigue floor mats that provide extra cushion and support for people who spend a lot of time on their feet. The mats can be used in industrial, retail, office, and home environments. A growing area of use is for people who have chosen to use a standing desk in their office.
Swanson uses a job order costing system to accumulate product costs and applies overhead to its jobs using machine hours as the application base. For the current year, the company budgeted $3,000,000 in manufacturing overhead and planned to use 250,000 machine hours, resulting in a predetermined overhead rate of $12/machine hour.
During February, Swanson incurred the following costs:
Raw material purchases
|
$194,000
|
Direct materials used in production
|
$162,400
|
Indirect materials used in production
|
$40,700
|
Direct labor payroll
|
$160,100
|
Indirect labor payroll
|
$71,000
|
Payments for other manufacturing overhead
|
$125,000
|
The table below summarizes production and sales activity for the month of February. Jobs 170 and 171 were the only new jobs started during February. Jobs 145, 146, and 171 were completed during February.
Job
|
Beginning Balance
|
Direct Materials Added
|
Direct Labor Added
|
Applied MOH
|
Total Cost as of 2/28
|
Units completed
|
Units sold
|
145
|
$50,000
|
$23,000
|
$49,000
|
$ 72,000
|
$194,000
|
1,000
|
1,000
|
146
|
18,000
|
46,000
|
31,400
|
57,600
|
153,000
|
1,500
|
1,400
|
170
|
|
9,800
|
12,700
|
8,400
|
30,900
|
|
|
171
|
|
83,600
|
67,000
|
110,400
|
261,000
|
1,800
|
1,200
|
TOTAL
|
$68,000
|
$162,400
|
$160,100
|
$248,400
|
$638,900
|
|
|
Required -
1. Calculate total manufacturing cost for February.
2. Calculate cost of goods manufactured for February.
3. Calculate unadjusted cost of goods sold for February.