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Hacken Company 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 Hacken Company for the past year:
Direct materials used in production$1,250Total manufacturing costs charged to production during the year (includes direct materials, direct labor, and applied factory overhead)$6,050Manufacturing overhead applied$2,800Selling and administrative expenses$1,000Inventories:Direct materials, January 1$130Direct materials, December 31$80Work in process, January 1$250Work in process, December 31$400Finished goods, January 1$300Finished goods, December 31$200
Required:a. Compute the cost of direct materials purchased during the year.b. Compute the predetermined overhead rate that was used during the past year.c. Compute the Cost of Goods Manufactured for the past year.d. Compute the Cost of Goods Sold for the past year.
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