Cost Accounting:

Zainaco makes and sells hair products at an awesome. the hair products are made of aloe, gel and tea tree oil. given that following information about Zainaco s January operations, answer the questions below.

budgeted MOH $800 per month, budgeted machine hours Zainaco chosen all allocation base for 200.

Inventory balances 1/1

Hair products $ 1000

Aloe 50

Partly mixed hair products. 400

Gel 300

Tea tree oil 450

Doing January Zainaco bought 200 ounces of Aloe at $0.75 per ounce. 6000 ounces of gel at $0.5 per ounce and 800 ounces of tea tree oil for $3 an ounce. the machines where used 190 hours. it also incurred the following costs:

Depreciation on machines $30 per month

Depreciation on tools 10 per month

Kerry cashier at in the store 40 hrs/wk at $12 per hour for 4 wks

rent on factory 150 per month

Alex factory custodian 10 hr/wk at $8/hr for 4 wks

Utilities for factory $200 per month/ 0.05per kilowatt hr

Canjie shampoo mixer 40 hrs/wk at $10 per hr

categorize the inventory items listed above

categorize each of the cost listed above as Direct materials, manufacturing overhead. Or period (Nonmanufacturing) cost and as fixed or variable.

Zainaco sold $15,000 worth of hair Products in January. Create an income statement for the month, like many companies Zainaco uses actual for DM and DL, and the budgeted MOH rate to calculate MOH.

In March, Zainaco gets its utility bill 2000 (kilowatts hours were used) for January, the last MOH costs for that month, how much is Zainaco MOH over or under - applied? What are its options for disposing all of this amount? Show all these.