Connecticut Manufacturing began business on January 1.During its first year of operation,Connecticut worked on five industrial jobs and reported the following information at year-end: $\begin{array}{|l|r|r|r|r|r|}
\hline & \text { Job 1 } & \text { Job } 2 & \text { Job 3 } & \text { Job 4 } & \text { Job 5 } \
\hline \text { Direct Materials } & \$ 2300 & \$ 7900 & \$ 4,000 & \$ 3,500 & \$ 1,500 \
\hline \text { Direct Labor } & \$ 14,000 & \$ 23,000 & \$ 13,000 & \$ 12,000 & \$ 800 \
\hline \text { Allocated Mfg, Overhead } & \$ 1600 & \$ 6500 & \$ 2,500 & \$ 7,500 & \$ 200 \
\hline & & & & & \text { Not } \
\hline \text { Tob completed: } & \text { Jur } 30 & \text { Sep } 1 & \text { Oct } 15 & \text { Nov } 1 & \text { completed } \
\hline \text { Tob sold: } & \text { Jul } 10 & \text { Sep } 12 & \text { Not sold } & \text { Not sold } & \text { N/A } \
\hline \text { Revenues: } & \$ 47,000 & \$ 41,000 & \text { N/A } & \text { N/A } & \text { N/A } \
\hline
\end{array}$
Connecticut's allocation of overhead costs left a debit balance of $1400 in the Manufacturing Overhead account,which was adjusted to zero at year-end.What was the final balance in Cost of Goods Sold for the year ended December 31?

Question

Connecticut Manufacturing began business on January 1.During its first year of operation,Connecticut worked on five industrial jobs and reported the following information at year-end: $\begin{array}{|l|r|r|r|r|r|} 
\hline & \text { Job 1 } & \text { Job } 2 & \text { Job 3 } & \text { Job 4 } & \text { Job 5 } \
\hline \text { Direct Materials } & \$ 2300 & \$ 7900 & \$ 4,000 & \$ 3,500 & \$ 1,500 \
\hline \text { Direct Labor } & \$ 14,000 & \$ 23,000 & \$ 13,000 & \$ 12,000 & \$ 800 \
\hline \text { Allocated Mfg, Overhead } & \$ 1600 & \$ 6500 & \$ 2,500 & \$ 7,500 & \$ 200 \
\hline & & & & & \text { Not } \
\hline \text { Tob completed: } & \text { Jur } 30 & \text { Sep } 1 & \text { Oct } 15 & \text { Nov } 1 & \text { completed } \
\hline \text { Tob sold: } & \text { Jul } 10 & \text { Sep } 12 & \text { Not sold } & \text { Not sold } & \text { N/A } \
\hline \text { Revenues: } & \$ 47,000 & \$ 41,000 & \text { N/A } & \text { N/A } & \text { N/A } \
\hline
\end{array}$
 Connecticut's allocation of overhead costs left a debit balance of $1400 in the Manufacturing Overhead account,which was adjusted to zero at year-end.What was the final balance in Cost of Goods Sold for the year ended December 31?

Quizplus · Accepted Answer

To calculate the final balance in Cost of Goods Sold (COGS) for the year, we need to sum up the costs of the jobs that were completed and sold. Jobs 1 and 2 were both completed and sold within the year. The costs for these jobs include direct materials, direct labor, and allocated manufacturing overhead. Additionally, the debit balance in the Manufacturing Overhead account indicates that overhead was underallocated, so we need to add this amount to the COGS.Job 1 costs: $2,300 (Direct Materials) + $14,000 (Direct Labor) + $1,600 (Allocated Mfg. Overhead) = $17,900Job 2 costs: $7,900 (Direct Materials) + $23,000 (Direct Labor) + $6,500 (Allocated Mfg. Overhead) = $37,400Total costs for Jobs 1 and 2: $17,900 + $37,400 = $55,300Adjusting for the underallocated overhead: $55,300 + $1,400 (debit balance in Mfg. Overhead) = $56,700Therefore, the final balance in COGS is $56,700.

Connecticut Manufacturing Began Business on January 1 Connecticut's Allocation of Overhead Costs Left a Debit Balance of of Operation,Connecticut