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Homework answers / question archive / During 2020 Waterway Manufacturing expected Job 25 to cost $75300 of overhead, $130600 of material, and $25000 in labour
During 2020 Waterway Manufacturing expected Job 25 to cost $75300 of overhead, $130600 of material, and $25000 in labour. Caruba applied overhead based on direct labour cost. Actual production required an overhead cost of $79800, $140900 in materials used, and $20000 in labour. All of the goods were completed. What amount was transferred to Finished Goods? $240700 $230900 $221140 $210840
Computation of Amount Transferred to Finished Goods:
Applied Overhead Rate = Expected Overhead / Expected Labor Cost
= $75,300 / $25,000
= $3.012
Amount of Finished Goods = Material used + Actual labor cost + Applied overhead
= $140,900 + $20,000 + ($20,000 * 3.012)
= $160,900 + 60,240
= $221,140
