The following accounts are from last year’s books at s manufacturing: raw materials bal 0 (b) 157,400 (a) 172,500 15,100 work in process bal 0 (f) 523,600 (b) 133,700 (c) 171,400 (e) 218,500 0 finished goods bal 0 (g) 477,000 (f) 523,600 46,600 manufacturing overhead (b) 23,700 (e) 218,500 (c) 27,700 (d) 159,400 7,700 cost of goods sold (g) 477,000 s manufacturing uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. what is the amount of cost of goods manufactured for the year

The manufacturing overhead over applied by $6,600.

Explanation:

Given that,

Manufacturing Overhead from last year’s books at Sharp Manufacturing:

(b) 22,600

(c) 26,600

(d) 157,200

(e) 213,000

Actual manufacturing overhead = b + c + d

                                                     = 22,600 + 26,600 +  157,200

                                                     = $206,400

Manufacturing Overhead applied = e = $213,000

Manufacturing overhead applied is $213,000 but actual manufacturing overhead is  $206,400

Hence,

Manufacturing overhead over applied by:

= Manufacturing Overhead applied - Actual manufacturing overhead

= $213,000 - $206,400

= $6,600

Therefore, the manufacturing overhead over applied by $6,600.

                          Cost of goods manufactured

Cost of goods sold                                    $467,000

Closing Inventory of finished goods          515,600

 Cost of Goods Available for Sales         982,600                                                                    

opening Inventory of FG                         (467,000)

Cost of Goods Manufactured                  515,600  

Explanation:

$132,400

Explanation:

Based on the information given we were told that Sharp make use of job order costing as well as applies manufacturing overhead to jobs which are often based on the direct labor costs, which simply means the amount of direct materials that is been used for the year will be a debit amount of $132,400 in the work in process .

Therefore the amount of direct materials used for the year will be $132,400

$133,000

Explanation:

The amount of direct material used for the year is $133,000 plus the direct material used is also debited to work in process. And the $133,000 is come from work in process account in (B)

All other information i.e to be given is not relevant. Hence, ignored it

And, the direct material used is come from

= Opening inventory + purchase of raw material - ending inventory

$510,000

Explanation:

Calculation for the amount of cost of goods manufactured for the year

Two method can be used in calculating the cost of goods manufactured for the year

METHOD 1

Using this formula

Cost of goods manufactured= Beginning Balance Cost of goods sold + Ending Balance Finishing goods ending balance

Where,

Beginning Balance of Cost of goods sold = $460,000

Ending Balance Finishing goods = $510,000 -$460,000 = 50,000

Let plug in the formula

Cost of goods manufactured=$460,000+$50,000

Cost of goods manufactured=510,000

OR METHOD 2

Calculation for the cost of good manufactured for the year

Beginning work in process$0

Direct material$132,000

Direct labor$168,000

Manufacturing overhead$210,000

Less: Ending work in process$0

Cost of goods manufactured $510,000

Therefore the amount of cost of goods manufactured for the year will be $510,000

Answer is $ 132,200        

Explanation:        

Direct material used is amount debited to Work in Process account lesser than 154,400.

As the Total material issued is 154,400 which includes the direct and indirect material both.

Used in Production   $   133,200

Explanation:

                   Raw Materials T accounts:

                              DEBIT          CREDIT      

Beginning                   0

Used                                             156,400

Purchasesd          170,000                          

Ending Balance      13,600

Looking at the T-account the debit represent purchases of Raw materials

While the credit is the amount of materials used wheter is indirect or direct

To look for the amount used

we look into:  

WIP     inventory

DEBIT         CREDIT

133,200  

Manufacturing Overhead

DEBIT         CREDIT

23,200