Connecticut Manufacturing began business on January 1
During its first year of operation, Connecticut worked on five industrial jobs and reported the following information at year-end:
Job 1 Job 2 Job 3 Job 4 Job 5
Direct Materials 2,300 7,900 4,000 3,500 1,500
Direct Labor 14,000 23,000 13,000 12,000 800
Allocated Mfg. Overhead 1,600 6,500 2,500 7,500 200
Job completed: Jun 30 Sep 1 Oct 15 Nov 1 Not completed
Job sold: Jul 10 Sep 12 Not sold Not sold N/A
Revenues: 47,000 41,000 N/A N/A N/A
Connecticut's allocation of overhead costs left a debit balance of $1,400 in the Manufacturing Overhead account, which was adjusted to zero at year-end. What was the final balance in Cost of Goods Sold for the year ended December 31?
A) $55,300
B) $56,700
C) $53,900
D) $17,900
B .B)
Cost of Goods Sold:
Job 1 ($2,300 + $14,000 + $1,600 ) $17,900
Job 2 ($7,900 + $23,000 + $6,500 ) 37,400
Underallocated overhead costs 1,400
Balance in Cost of Goods Sold $56,700
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