Reference no: EM132794402

The Counting Crows began operations on October 1. During the first three months of operations, only 3 jobs were worked on. Job 700 was started in October and finished in November. Job 800 was started in November and finished in December; and, Job 900 was started in December and UNFINISHED as of December 31. Direct costs incurred on the jobs were as follows:

                            Job 700                             Job 800                          Job 900

                 Oct .      Nov             . Nov.               Dec.              Dec.
DM              $23,000   $9,000         $10,000           $12,000      $32,000
DL              $20,000       $4,000         $8,000         $11,000      $15,000

Overhead is applied at a rate of 50% of Direct Labor Cost. ACTUAL Overhead incurred in October was $14,900; in November was $4,500, and in December was $10,500. Job 800 consisted of 10,000 units. In December, 8,000 units were sold for $10.00 each. No other units were sold during the 3 month period.

Problem 1: Compute the Cost of Good Manufactured for October.

A. 0

B.66000

C. 81500

D.41000

E. 50500

Problem 2: Compute the Unadjusted Cost of Good Sold for December.

A. 40400

B. 48000

C. 54400

D.55600

E. 44800