[Anonymous]

On January 1 Maples had two jobs in process: #506 with assigned costs of $10,500 and #507 with assigned costs of $14,250. During January three new jobs, #508 through #510, were started and three jobs, #506, #507, and #508, were completed. Materials and labor costs added during January were as follows:

Job number Materials Labor

506 $0 $2,000

507 0 1,500

508 4,000 3,600

509 3,800 2,000

510 2,600 3,100

Manufacturing overhead is assigned at the rate of 200 percent of labor. What is the January cost of goods manufactured and transferred from work-in-process?

A. $25,300

B. $35,850

C. $42,950

D. $50,050

Answer: D. Jobs 506 – 508 were the only jobs completed so the costs of these jobs is the focus of this question. DM and DL for those jobs is $35,850, but OH had to be added at ($2,000 + $1,500 + $3,600) x 200% = ($7,100 x 2) + $35,850 = $50,050.

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Where did $35,850 for DM and DL come from?

[Anonymous]

completed Job assigned costs Materials Labor Total

506 10,500 – 2,000 12,500

507 14,250 – 1,500 15,750

508 – 4,000 3,600 7,600

Total 35,850

[Anonymous]

completed Job assigned costs Materials Labor Total

506 10,500 – 2,000 12,500

507 14,250 – 1,500 15,750

508 – 4,000 3,600 7,600

Total 35,850

[Author]

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