XYZ Company began operations during 2011 and employs a job-order

XYZ Company began operations during 2011 and employs a job-order costing system that applies overhead to jobs using direct labor hoursas the activity level. For 2011, XYZ Company had total estimated overhead of $229,500 and total estimated direct labor hours of 25,500.Listed below is a summary of events and transactions that occurred during 2011:a. XYZ Company purchased 80,000 pounds of direct materials at $4.20 per pound.b. XYZ began work on three jobs. Direct materials used for each job were:Job A-1 ……………… 17,000 poundsJob A-2 ……………… 25,000 poundsJob A-3 ……………… 30,000 poundsc. Direct labor hours used for each job were:Job A-1 ……………… 9,800 hoursJob A-2 ……………… 7,800 hoursJob A-3 ……………… 8,400 hoursDirect labor workers are paid $12 per hour.d. The following additional costs were incurred:Manufacturing Facility Administrative FacilityRent ……………… $ 42,000 $ 15,000Depreciation ……. 55,000 12,000Utilities …………. 51,000 10,000Salaries ………..… 92,0001 65,000Totals …………… $ 240,000 $ 102,0001 This $92,000 is all indirect labor. See letter (c) for direct labor for the manufacturing facility.e. Jobs A-1 and A-2 were completed during 2011. Job A-2 was sold to the customer for $420,000.Calculate XYZ Company’s cost of goods manufactured for 2011. Do not use decimals in your answer.

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