02.07.2022 - 17:23

# The Lee Company uses a job-order costing system. The following data were for June : Job Number 235 , june 1 work in process inventory : $2,500 direct materials :$600 direct labor : $400 236, june 1 w Question: The Lee Company uses a job-order costing system. The following data were for June: Job Number June 1 Work in process inventory Direct materials Direct labor 235$2,500 $600$400
236 $1,500$800 $1,000 237$1,000 $1,200$1,750
238 $800$1,500 $2,250 Overhead is charged to production at 80% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers. Required: Lee Company’s cost of goods sold for June was: A)$15,520
B) $10,170 C)$9,730
D) $14,460 Answers (1) • April 4, 2023 в 11:46 The correct answer is D)$14,460. Explanation: To calculate the cost of goods sold, we need to find the total cost of the jobs that were completed and transferred to finished goods during June. This includes jobs 235, 237, and 238. For job 235: Direct materials cost = $600 Direct labor cost =$400 Overhead cost = 80% of direct materials cost = 0.8 x $600 =$480 Total cost = $600 +$400 + $480 =$1,480 For job 237: Direct materials cost = $1,200 Direct labor cost =$1,750 Overhead cost = 80% of direct materials cost = 0.8 x $1,200 =$960 Total cost = $1,200 +$1,750 + $960 =$3,910 For job 238: Direct materials cost = $1,500 Direct labor cost =$2,250 Overhead cost = 80% of direct materials cost = 0.8 x $1,500 =$1,200 Total cost = $1,500 +$2,250 + $1,200 =$4,950 The total cost of goods completed and transferred to finished goods during June is: $1,480 +$3,910 + $4,950 =$10,340 However, we need to also account for the cost of goods sold for jobs 235 and 238 that were delivered to customers during June. For job 235, the cost was $1,480 and for job 238, the cost was$4,950. Therefore, the total cost of goods sold for June was: $10,340 +$1,480 + $4,950 =$14,460 Therefore, the correct answer is D) $14,460. Do you know the answer? Not sure about the answer? Find the right answer to the question The Lee Company uses a job-order costing system. The following data were for June : Job Number 235 , june 1 work in process inventory :$2,500 direct materials : $600 direct labor :$400 236, june 1 w by subject Accounting, and if there is no answer or no one has given the right answer, then use the search and try to find the answer among similar questions.
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