During 2020 Waterway Manufacturing expected Job 25 to cost $75300 of overhead, $130600 of material, and $25000 in labour

Management Dec 09, 2020

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

Expert Solution

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

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote