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Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year:
Beginning inventories:
Finished goods $30,000
Estimated total manufacturing overhead
at the beginning of the year $568,000
Estimated direct labor-hours at the
beginning of the year 32,000 direct labor hours
Results of operations:
Raw materials (all direct) requisitioned
for use in production $501,000
Direct labor cost $683,000
Actual direct labor-hours 33,000 direct labor-hours
Manufacturing overhead:
Indirect labor cost $176,000
Other manufacturing overhead costs incurred $420,000
Selling and administrative:
Selling and administrative salaries $219,000
Other selling and administrative expenses $346,000
Cost of goods manufactured $1,567,000
Sales revenue $2,498,000
Cost of goods sold (unadjusted) $1,376,000
How much is the total manufacturing cost added to work in process during the year?
a. $1,567,000
b. $1,268,750
c. $1,769,750
d. $1,184,000
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Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes out any over...
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