Question

2019, Goodman Manufacturing expected Job No. 25 to cost $250,000 of overhead, $400,000 of materials, and $250,000 in labor. Goodman applied overhead based on direct labor cost. Actual production required an overhead cost of $285,000, $560,000 in materials used, and $230,000 in labor. All of the goods were completed.

The amount transferred to finished goods was?

Answer 1

Solution:
	Calculation of Total Cost transferred to Finished Goods
		Amount
	Direct Materials	$            560,000
	Direct Labor	$            230,000
	Manufacturing Overhead	$            250,000
	Total Manufacturing Cost transferred to Finished Goods	$        1,040,000
	Answer - $ 1,040,000
	Note: Overhead cost assigned to any job on the basis of predetermined overhead
	rate. In the give job predtermined overhead is $ 250,000 which is taken for
	total cost and actual labour and actual material expenses is taken
	Difference of actual overhead and predtermined overhead is adjusted at the
	time of calculated of adjusted cost of goods sold.