Calculate unadjusted cost of goods sold for February

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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.

Reference no: EM133104580

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