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Hello students, here is a question.
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Matrack company begin and ending inventory for a month of november were as follow.
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So, november 1st, 30 direct materials are $67 ,000 and $62 ,000.
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Work in progress is $145 ,000 and $171 ,000.
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Finished goods are $85 ,000 and $78 ,000.
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Production data for the month as follow.
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Direct labor cost incurred $200 ,000.
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Actual manufacturing overhead cost incurred is $132 ,000.
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Direct material purchase are $163 ,000.
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Transportation in 4000 purchase return and allowance is 2000.
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Matrack uses one overhead control account and charges overhead to the production of 70 % direct labor cost.
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The company does not formally recognize over and under applied overhead until year end.
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What is the total manufacturing cost for the november? so, this is our question.
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Let us start solving this.
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First thing we need to calculate the direct material used for production...