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: $$\begin{array} { | l | r | r | r | r | r | }
\hline & \text { Job 1 } & \text { Job 2 } & \text { Job 3 } & \text { Job 4 } & \text { Job 5 } \
\hline \text { Direct Materials } & 2,300 & 8,100 & 4,000 & 3,500 & 1,500 \
\hline \text { Direct Labor } & 12,000 & 20,200 & 13,000 & 12,000 & 800 \
\hline \text { Allocated Mfg. Overhead } & 1,500 & 6,200 & 2,500 & 7,500 & 200 \
\hline & & & & & \text { Not } \
\text { Job completed: } & \text { Jun 30 } & \text { Sep 1 } & \text { Oct 15 } & \text { Nov 1 } & \text { completed } \
\hline \text { Job sold: } & \text { Jul 10 } & \text { Sep 12 } & \text { Not sold } & \text { Not sold } & \text { N/A } \
\hline \text { Revenues: } & 44,000 & 42,000 & \text { N/A } & \text { N/A } & \text { N/A } \
\hline
\end{array}$$ Connecticut's allocation of overhead costs left a debit balance of $1,300 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: $$\begin{array} { | l | r | r | r | r | r | } 
\hline & \text { Job 1 } & \text { Job 2 } & \text { Job 3 } & \text { Job 4 } & \text { Job 5 } \
\hline \text { Direct Materials } & 2,300 & 8,100 & 4,000 & 3,500 & 1,500 \
\hline \text { Direct Labor } & 12,000 & 20,200 & 13,000 & 12,000 & 800 \
\hline \text { Allocated Mfg. Overhead } & 1,500 & 6,200 & 2,500 & 7,500 & 200 \
\hline & & & & & \text { Not } \
 \text { Job completed: } & \text { Jun 30 } & \text { Sep 1 } & \text { Oct 15 } & \text { Nov 1 } & \text { completed } \
\hline \text { Job sold: } & \text { Jul 10 } & \text { Sep 12 } & \text { Not sold } & \text { Not sold } & \text { N/A } \
\hline \text { Revenues: } & 44,000 & 42,000 & \text { N/A } & \text { N/A } & \text { N/A } \
\hline
\end{array}$$ Connecticut's allocation of overhead costs left a debit balance of $1,300 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 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. For Job 1, the total cost is $2,300 (direct materials) + $12,000 (direct labor) + $1,500 (allocated overhead) = $15,800. For Job 2, the total cost is $8,100 (direct materials) + $20,200 (direct labor) + $6,200 (allocated overhead) = $34,500. The sum of these costs is $15,800 + $34,500 = $50,300. However, there was a debit balance of $1,300 in the Manufacturing Overhead account, which indicates that the actual overhead costs were higher than what was allocated. This amount needs to be added to the COGS, making the final balance $50,300 + $1,300 = $51,600.

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