Connect with experts and get insightful answers on IDNLearn.com. Find in-depth and accurate answers to all your questions from our knowledgeable and dedicated community members.
Answer and Explanation:
The computation is shown below:
1) Raw material used is
= $24,000 + $310,000 - $18,000
= $316,000
2) Predetermined Overhead rate is
= $1,000,000 ÷ 10,000 direct labor hours
= $100 per DLH
3) Total manufacturing cost is
= $316,000 + $480,000 + $930,000 (9,300 ×$100)
= $1,726,000
4) Cost of goods manufactured is
= $72,000 + $1,726,000 - $97,000
= $1,701,000
In this way it is calculated