Alex Company manufactures cell phone chargers for people who want to keep their old, outdated cell phones but cant find chargers for them anymore. The firm had the following inventories at the beginning and end of the year 2017.

Jan 1, 2017 Dec 31, 2017

Finished goods $125,000 $117,000

Work in process $235,000 $251,000

Raw materials $134,000 $124,000

The following additional manufacturing data pertains to 2017 operations.

Raw material purchased $191,000

Direct labor $300,000

Actual manufacturing overhead $175,000

Selling and Administrative Expenses $200,000

Alex Company applies manufacturing overhead at the rate of 60 percent of direct-labor cost.

Required:

Compute the following amounts.

a.Alex Companys direct materials cost for 2017.

b.Alex Companys direct labor cost for 2017.

c.Alex Companys applied overhead for 2017.

d.Alex Companys total manufacturing cost for 2017.

e.Alex Companys cost of goods manufactured for 2017.

f.Alex Companys cost of goods sold for 2017.

g.Assume Alex Company wants to achieve a Gross Profit of 30% of Sales -- Compute Sales.

h.Show Alex Company's Income Statement

i.Was overhead under or over applied and by how much?

j.How will the amount in (i) be handled?

k.Why does overhead need to be applied? Explain.

l.If Alex estimated overhead for 2017 to be $192,000, what base did it use for its predetermined overhead rate and how much was it?