Southworth company uses a job-order costing system

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Southworth Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. Its predetermined overhead rate was based on a cost formula that estimated $222,600 of manufacturing overhead for an estimated allocation base of $159,000 direct material dollars.

The following transactions took place during the year (all purchases and services were acquired on account):

a.	Raw materials purchased, $151,000.
b.	Raw materials requisitioned for use in production (all direct materials), $142,000.
c.	Utility bills incurred in the factory, $22,000.
d.	Costs for salaries and wages were incurred as follows:


Direct labor	$	224,000
Indirect labor	$	61,800
Selling and administrative salaries	$	144,000

e.	Maintenance costs incurred in the factory, $25,000.
f.	Advertising costs incurred, $120,000.
g.	Depreciation recorded for the year, $48,000 (70% relates to factory assets, and the remainder relates to selling and administrative assets).
h.	Rental cost incurred on buildings, $87,000 (70% of the space is occupied by the factory, and 30% is occupied by sales and administration).
i.	Miscellaneous selling and administrative costs incurred, $12,000.
j.	Manufacturing overhead cost was applied to jobs, $ ?
k.	Cost of goods manufactured for the year, $558,000.
l.	Sales for the year (all on account) totaled $1,300,000. These goods cost $530,000 according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were as follows:


Raw materials	$	25,000
Work in process	$	21,000
Finished Goods	$	34,000

Reference no: EM131103826

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