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Rio Manufacturing Company Uses a Job-Order Costing System

Question 29

Multiple Choice

Rio Manufacturing Company uses a job-order costing system.At the beginning of February,Rio only had one job in process,Job #594.The direct costs assigned to this job at that time were $800 of materials and $650 of labor.Job #594 was finished during February incurring additional direct costs of $120 for materials and $370 for labor.Job #595 was started and finished during February.The direct costs assigned to this job were $310 for materials and $190 for labor.Job #596 was started during February but was not finished by the end of the month.The direct costs assigned to this job were $740 for materials and $300 for labor.Rio applies manufacturing overhead to its products at a rate of 200% of direct labor cost.What is Rio's cost of goods manufactured for February?


A) $2,440
B) $3,750
C) $4,860
D) $6,500

Correct Answer:

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