Reference: 03-02
Hamilton Company Uses Job-Order Costing Jobs 102, 103, and 104 Were Started During February

question 81

Multiple Choice

Reference: 03-02
Hamilton Company uses job-order costing. Manufacturing overhead is applied using a predetermined rate of
150% of direct labour cost. Any overapplied or underapplied manufacturing overhead is closed to the Cost of
Goods Sold account at the end of each month. Additional information is available as follows:
Job 101 was the only job in process at January 31. The job cost sheet for this job contained the following costs at the beginning of the month: $$\begin{array} { | l | l | } \hline \text { Direct materials } & \$ 4,000 \\\hline \text { Direct labour } & \$ 2,000 \\\hline \text { Applied manufacturing overhead } & \$ 3,000 \\\hline\end{array}$$ Jobs 102, 103, and 104 were started during February.
Direct materials requisitions for February totalled $26,000. Direct labour cost of $20,000 was incurred for February. Actual manufacturing overhead was $32,000 for February.
The only job still in process at February 28 was Job 104, with costs of $2,800 for direct materials and $1,800 for direct labour.
-The cost of goods manufactured for February was:

• A)$85,000.
• B)$77,700.
• C)$79,700.
• D)$78,000.

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Definitions:

Applied Anthropology

The practical application of anthropological methods and insights to solve real-world problems and improve the human condition.

Theoretical Value

The abstract or calculated worth of an object or concept based on principles or formulas rather than practical or market value.

On-Location Research

Fieldwork conducted in the actual setting where a subject or phenomenon naturally occurs.

Fieldwork

The term anthropologists use for on-location research.