Rally Point Inc. designs and builds volleyball gymnasiums. Each gymnasium is custom-built to an individual customer's specifications. Rally Point uses job-order costing to track its costs. In January, Rally Point worked on three jobs. Data for these jobs are as follows:
Overhead is applied to jobs at the rate of $25 per machine hour. By January 31, Job 200 is the only job unfinished. The balance of finished goods on January 1 is $63,290 (consisting of Job 100 only). Jobs 100 and 300 are sold during January. Rally Point sells its product at cost plus 40%.
$\begin{array}{lrrrr}&\text { Job } 100&\text { Job } 200&\text { Job } 300\
\text { Balance } 1 / 1 & \$ 13,790 & \$ 0 & \$ 0 \
\text { Direct Materials } & 16,200 & 8,500 & 30,500 \
\text { Direct Labour Cost } & 23,300 & 7,600 & 45,000 \
\text { Machine Hours } & 400 & 300 & 2,000
\end{array}$
-Refer to the Figure.What is the cost of goods sold for February?

Question

Rally Point Inc. designs and builds volleyball gymnasiums. Each gymnasium is custom-built to an individual customer's specifications. Rally Point uses job-order costing to track its costs. In January, Rally Point worked on three jobs. Data for these jobs are as follows:
Overhead is applied to jobs at the rate of $25 per machine hour. By January 31, Job 200 is the only job unfinished. The balance of finished goods on January 1 is $63,290 (consisting of Job 100 only). Jobs 100 and 300 are sold during January. Rally Point sells its product at cost plus 40%.
 $\begin{array}{lrrrr}&\text { Job } 100&\text { Job } 200&\text { Job } 300\
\text { Balance } 1 / 1 & \$ 13,790 & \$ 0 & \$ 0 \
\text { Direct Materials } & 16,200 & 8,500 & 30,500 \
\text { Direct Labour Cost } & 23,300 & 7,600 & 45,000 \
\text { Machine Hours } & 400 & 300 & 2,000
\end{array}$
-Refer to the Figure.What is the cost of goods sold for February?

Quizplus · Accepted Answer

To calculate the cost of goods sold (COGS) for February, we first need to determine the cost of each job and then sum the costs of the jobs sold in January, since the question seems to have a typo referring to February instead of January (as February's sales and production are not provided). 1. Calculate the overhead applied to each job:- Overhead rate = $25 per machine hour.- Job 100: 400 machine hours * $25 = $10,000- Job 200: 300 machine hours * $25 = $7,500- Job 300: 2,000 machine hours * $25 = $50,0002. Calculate the total cost of each job:- Job 100: $13,790 (Balance 1/1) + $16,200 (Direct Materials) + $23,300 (Direct Labour) + $10,000 (Overhead) = $63,290- Job 200: $0 (Balance 1/1) + $8,500 (Direct Materials) + $7,600 (Direct Labour) + $7,500 (Overhead) = $23,600- Job 300: $0 (Balance 1/1) + $30,500 (Direct Materials) + $45,000 (Direct Labour) + $50,000 (Overhead) = $125,5003. Determine the cost of goods sold (COGS):- Since Jobs 100 and 300 are sold, we sum their costs: $63,290 (Job 100) + $125,500 (Job 300) = $188,790Therefore, the cost of goods sold for the period is $188,790.

Rally Point Inc -Refer to the Figure