Kapanga Manufacturing Corporation uses a job-order costing system and started the month of October with a zero balance in its work in process and finished goods inventory accounts. During October, Kapanga worked on three jobs and incurred the following direct costs on those jobs:
Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October, Kapanga completed Jobs B18 and B19 and sold Job B19.
-How much is Kapanga's cost of goods manufactured for October?
A) $ 50,000
B) $ 55,000
C) $ 78,000
D) $ 82,000

Question

Kapanga Manufacturing Corporation uses a job-order costing system and started the month of October with a zero balance in its work in process and finished goods inventory accounts. During October, Kapanga worked on three jobs and incurred the following direct costs on those jobs:
  Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October, Kapanga completed Jobs B18 and B19 and sold Job B19.
-How much is Kapanga's cost of goods manufactured for October?
A) $ 50,000 
B) $ 55,000 
C) $ 78,000 
D) $ 82,000

Quizplus · Accepted Answer

11ea7761_18eb_7b14_81a5_67abc216684b_TB2580_00 Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory - Ending work in process inventory
Cost of goods manufactured = $112,500 + $0 - $30,500 = $82,000

Kapanga Manufacturing Corporation Uses a Job-Order Costing System and Started