Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to...

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Accounting

Lamour Corporation is a job order costing company that usesactivity-based costing to apply overhead to jobs. The followingoverhead activities were budgeted for the year.
Activity Cost Driver Amount ofdriver
Setups $240,000 Number of setups 6,000
Purchasing 160,000 Number of parts 20,000
Other overhead 300,000 Direct labor hours 80,000

The following information about the jobs was given for April.
Job 101 Job 102 Job 103 Job 104
Balance 4/1 $64,900 $40,770 $30,500 0
Direct materials 54,000 37,900 25,000 11,000
Direct labor 80,000 38,500 43,000 21,000
Number of setups 40 10 30 200
Number of parts 300 80 400 500
Direct labor hours 5,000 2,400 5,200 1,200

By April 30, Jobs 102 and 103 were completed and sold. Theremaining jobs were still in process.
What is the cost of goods manufactured?
a.$ 249,610
b.$ 178,340
c.$ 215,670
d.$ 144,400

Answer & Explanation Solved by verified expert

4.3 Ratings (812 Votes)

Lamour Corporation Determination of cost of goods manufactured The correct option is a 249610 Computations and Explanation Jobs 102 and 103 were completed and sold Hence the cost of goods manufactured comprises the cost of goods manufactured of Jobs 102 and 103 Cost of Goods Manufactured Job 102 Job 103 Total Balance 41 40770 30500 71270 Direct Materials 37900 25000 62900 Direct Labor 38500 43000 81500 See Answer

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Activity	Cost	Driver	Amount ofdriver
Setups	$240,000	Number of setups	6,000
Purchasing	160,000	Number of parts	20,000
Other overhead	300,000	Direct labor hours	80,000

	Job 101	Job 102	Job 103	Job 104
Balance 4/1	$64,900	$40,770	$30,500	0
Direct materials	54,000	37,900	25,000	11,000
Direct labor	80,000	38,500	43,000	21,000
Number of setups	40	10	30	200
Number of parts	300	80	400	500
Direct labor hours	5,000	2,400	5,200	1,200