Jason Cabinets Produces Cabinetry for Offices Around Adelaide CBD Required:
A

question 46

Essay

Jason Cabinets produces cabinetry for offices around Adelaide CBD.The company adds overhead costs to cabinetry jobs at the rate of $5.00 per direct labour hour.The company accumulates overhead costs in a separate manufacturing overhead account and applies overhead costs to products from this account into the WIP for jobs.The following data provide details of the company's activity and balances during the last half of the year:
$\begin{array}{|l|c|c|}\hline & \text { 1 July} & 31 \text { December } \\\hline \text { Direct materials inventory } &\$75000& \$78000\\\hline \text { Work in process inventory } &48000 &42000 \\ \hline\text { Finished goods inventory} &35000&33000\\\hline \text { Monthly production data: } && \\\hline \text { Direct materials purchased } &\$223& \\ \hline \text {Direct labour costs ( \( \$ 20 / \mathrm{hr} \).) } &\$300000\\ \hline\end{array}$

Required:
A. Calculate the cost of direct materials used during the period.
B. Calculate the cost of goods manufactured during the period.
C. At the end of December, Jason found that it had actually incurred overhead costs of $\$ 80 000$ . What is Jason's cost of goods sold after adjustment?

---

Definitions:

French and Indian War

A conflict between France and Britain from 1754 to 1763 in North America, part of the greater Seven Years' War, with Native American tribes playing key roles on both sides.

African Religions

Traditional religions practiced in various parts of Africa, often characterized by belief in a supreme being, ancestral worship, and spirituality connected to nature.

Middle Passage

The sea voyage that transported enslaved Africans across the Atlantic Ocean to the Americas as part of the triangular trade.

Slave Labor

A form of forced labor where individuals are owned by others, deprived of personal freedom, and compelled to perform work or services without consent.