Question
a. Direct manufacturing labor wage rate was $12per hour. b. Manufacturing overhead was allocated at $16 per direct manufacturing labor-hour. c.During the year, sales revenues
a. Direct manufacturing labor wage rate was $12per hour. b. Manufacturing overhead was allocated at $16 per direct manufacturing labor-hour. c.During the year, sales revenues were #1,030,000, and marketing and distribution costs were $120,000.
1.What was the amount of direct materials issued to production during 2020? 2.What was the amount of manufacturing overhead allocated to jobs during 2020? 3.What was the total cost of jobs completed during 2020? 4.What was the balance of work-in-process inventory on December 31, 2020? 5.What was the cost of goods sold before proration of under- or overallocated overhead? 6.What was the under- or overallocated manufacturing overhead in 2020? 7.Adjust for the under- or overallocated manufacturing overhead using the following: a.Write-off to Cost of Goods Sold b.Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold 8.Using each of the approaches in requirement 7, calculate 's Paul operating income for 2020. 9. Which approach in requirement 7 do you recommend Paul use? Explain your answer briefly.
Direct materials issued to production during 2020 was = ?
Direct Materials Control Work-in-Process Control Finished Goods Control 1-1-2020 41,000 233,000 1-1-2020 11,000 667,800 1-1-2020 43,000 Dir. Manuf. labor 354,000 Manufacturing Overhead Allocated 134,000 Manufacturing Overhead Control 509,000 923,920 Cost of Goods SoldStep by Step Solution
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