Reference no: EM132051642

Question - Hassenger has a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor cost. The information below has been taken from the cost records of the company for the past year:

Inventories:

Direct materials used in production $1,400

Direct materials, January 1 $480

Total manufacturing costs added during period $8,000

Direct materials, December 31 $520

Applied manufacturing overhead $3,300

Work in process, January 1 $730

Selling & Administrative expense $2,150

Work in process, December 31 $650

Finished goods, January 1 $480

Finished goods, December 31 $460

Required:

Compute the cost of direct materials purchased during the year.

Compute the predetermined overhead rate that was used during the year.

Compute the Cost of Goods Manufactured for the year.

Compute the Cost of Goods Sold for the year. (Do not close any under- or overapplied manufacturing overhead to Cost of Goods Sold.)