Cost of Goods Manufactured and Income Statement with Predetermined Overhead and Labor Cost Classifications Assume information pertaining to Performance Sports Group Ltd. for April 2017 follows. LO2, 4 Performance Sports Group Ltd. (PSG) Sales Purchases S250,000 Haw materials... . Manufacturing supplies .. Office supplies 40,000 800 500 Salaries (including fringe benefits) Administrative Production supervisors Sales 8,000 3,600 15,000 Depreciation 8,000 4.000 Office and office equipment Utilities Plant Office 5,250 890 Inventories April 1 April 30 Haw materials Manufacturing supplies . Office supplies Work-in-process. .. . Finished goods.. $8,000 $ 9,000 2,000 2,300 1,800 4,500 9,000 10,200 1,900 4.000 Additional information follows: .Manufacturing overhcad is applied to products at 85 percent of direct labor dollars. Employec basc wages are $12 per hour. Employec fringe benefits amount to 40 percent of the basc wage ratc. They are classified as manufacturing overhcad. During April, production employccs worked 5,600 hours, including 4,800 rcgular hours and 200 overtime hours spent working on products. There were 600 indirect labor hours. .Employecs are paid a 50 percent overtime premium. Any overtime premium is treated as overhcad. Required a. Prepare a statement of cost of goods manufactured and an income statement for Api b. Determine undcrapplied or overapplied overhcad for April. c. Rccompute direct labor and actual manufacturing overhcad assuming employcc fringe bencfits for direct labor hours are classificd as direct labor. Cost of Goods Manufactured and Income Statement with Predetermined Overhead and Labor Cost Classifications Assume information pertaining to Performance Sports Group Ltd. for April 2017 follows. LO2, 4 Performance Sports Group Ltd. (PSG) Sales Purchases S250,000 Haw materials... . Manufacturing supplies .. Office supplies 40,000 800 500 Salaries (including fringe benefits) Administrative Production supervisors Sales 8,000 3,600 15,000 Depreciation 8,000 4.000 Office and office equipment Utilities Plant Office 5,250 890 Inventories April 1 April 30 Haw materials Manufacturing supplies . Office supplies Work-in-process. .. . Finished goods.. $8,000 $ 9,000 2,000 2,300 1,800 4,500 9,000 10,200 1,900 4.000 Additional information follows: .Manufacturing overhcad is applied to products at 85 percent of direct labor dollars. Employec basc wages are $12 per hour. Employec fringe benefits amount to 40 percent of the basc wage ratc. They are classified as manufacturing overhcad. During April, production employccs worked 5,600 hours, including 4,800 rcgular hours and 200 overtime hours spent working on products. There were 600 indirect labor hours. .Employecs are paid a 50 percent overtime premium. Any overtime premium is treated as overhcad. Required a. Prepare a statement of cost of goods manufactured and an income statement for Api b. Determine undcrapplied or overapplied overhcad for April. c. Rccompute direct labor and actual manufacturing overhcad assuming employcc fringe bencfits for direct labor hours are classificd as direct labor
