Strawberry Corporation has two manufacturing departmentsForming and Finishing. The company used the following data at...
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Accounting
Strawberry Corporation has two manufacturing departmentsForming and Finishing. The company used the following data at the beginning of the period to calculate predetermined overhead rates:
Forming
Finishing
Estimated total machine-hours (MHs)
5650
Estimated total labor hours
3590
Estimated total fixed manufacturing overhead cost
$
10170
$
21540
Estimated variable manufacturing overhead cost per MH
$
2
Estimated variable manufacturing overhead cost per LH
3.60
During the most recent period, the company started and completed two jobs: Job B and Job K. There were no beginning inventories. Data concerning those two jobs follow:
Job B
Job K
Direct materials
$
20,400
$
8,600
Direct labor costs
$
22,600
$
81,000
Forming machine hours
3,000
2,650
Finishing machine hours
390
3,200
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.
During the period the company sold Job K for $237310 and Job B is unsold. The actual overhead for both departments for the period was $59134. The company closes any under/over applied overhead to the cost of goods sold at the end of every period.
How was the total cost manufacture Job K?
What was the periods gross margin?
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