Problem:1 (JOB ORDER COSTING)The Collins Company uses a job-order costing system and applies manufacturing overhead costto jobs on the basis of the cost of materials used in production. At the beginning of the mostrecent year, the following estimates were made as a basis for computing the predeterminedoverhead rate for the year:Manufacturing overhead cost: $200,000Direct materials cost:$160,000The following transactions took place during the year (all purchases and services were acquiredon account):a.) Raw materials purchased: $86,000.b.) Raw materials requisitioned for use in production (all direct materials): $98,000.c.) Utility costs incurred in the factory: $15,000.d.) Salaries and wages incurred as follows:Direct labour:$175,000Indirect labour:$70,000Selling and administrative salaries: $125,000e.) Maintenance costs incurred in the factory: $15,000.f) Advertising costs incurred: $89,000.g.) Depreciation recorded for the year: $80,000, of which 80% relates to factory assets and theremainder relates to selling and administrative assets.h.) Rental cost incurred on buildings: $70,000 (75% of the space is occupied by the factory, and25% is occupied by sales and administration).i) Miscellaneous selling and administrative costs incurred: $11,000.j.) Manufacturing overhead cost was applied to jobs as per company policy.k.) Cost of goods manufactured for the year: $500,000.1) Sales for the year (all on account): $1,000,000. These goods cost $600,000 to manufacture.Required:Prepare statement of cost of goods manufactured and net income.

Name: Problem:1 (JOB ORDER COSTING)The Collins Company uses a job-order cos
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Problem:1 (JOB ORDER COSTING)The Collins Company uses a job-order costing system and applies manufacturing overhead costto jobs on the basis of the cost of materials used in production. At the beginning of the mostrecent year, the following estimate