Divine prepared the following annual overhead cost budget at the start of the present year. ET90 MEJOREA Overhead item Budgeted amount Y urt BTAG 300 Supplies $290,000 Indirect Labor 422,340 Supervision 228,520 h Depreciation 425.800 ISO 100 Utilities 136,740 Factory Rent 185,000 Total $1,688,400 20760 Divine also informs you that it had budgeted for 80,400 direct labor hours at the start of the year. As of September 1, the company had incurred 75,315 actual direct labor hours and spent $1,569,450 in actual overhead costs. we bought During September, Divine purchased $112,340 of direct materials and $26,430 of indirect materials. The following table shows the requisition of direct materials during September: Job number Model Description Units Direct Materials X 00 Oval, OTC 700 $22,000 KL B OI R O RI Oval, in sink R ound, OTC Round, in sink 500 200 700 $58,000 H $24,000 $11,450 1154 (B) Divine consumed $22,000 of indirect materials during September. Divine incurred the following labor costs during September Job Hours Item Indirect Labo Direct Labor X 1,920 2,430 1,678 845 Amount $32,000 DY $34,560 $43,740 $29,365 $15,210 6873 The following comprises actual overhead costs (other than incurred during the month of September. cual overhead costs (other than supplies and indirect labor) of September.rid 10 nemes amount 169759915 olinamos oloa aboo 200 sto niort 197691 olas sd lliwungvon 20152 690 Ve Smoonia y Actual amount (for September) and nitrogo Supervision $18,400 ( 0) (COS Depreciation $32,650 Utilities $ 8,900 Factory rent 59 Tuoy yd be 15ws ad ll $15,400 no nobis mara E 75 350 Finally, Divine completed all jobs except Job B during September. It also sold the following items during the month of September. Model Units Sold 00 750 RI 200 OIRO 400 150 REQUIRED: 1. Compute the amount of under-over applied overhead for the me September and the year ended September 30. (10 pts.) September: Year: 2. Compute the ending balance of the Work in Process Inventory account at 9/30: (5 pts.) 3. Calculate the ending balance of Finished Goods Inventory for each model at 9/30 (use FIFO method). (20 pts.) Model 00: Model RI: Model OI: Model RO: 100 bis 2 2 00 batho Isus 29amonwalloon 4. Prepare an Income Statement for the month ended 9/30 (Assume that Sales Revenue will be 25% greater than total cost of Goods Sold, operating expenses are $20,000 and the company's income tax rate is 20%). (10 pts.) Divine prepared the following annual overhead cost budget at the start of the present year. ET90 MEJOREA Overhead item Budgeted amount Y urt BTAG 300 Supplies $290,000 Indirect Labor 422,340 Supervision 228,520 h Depreciation 425.800 ISO 100 Utilities 136,740 Factory Rent 185,000 Total $1,688,400 20760 Divine also informs you that it had budgeted for 80,400 direct labor hours at the start of the year. As of September 1, the company had incurred 75,315 actual direct labor hours and spent $1,569,450 in actual overhead costs. we bought During September, Divine purchased $112,340 of direct materials and $26,430 of indirect materials. The following table shows the requisition of direct materials during September: Job number Model Description Units Direct Materials X 00 Oval, OTC 700 $22,000 KL B OI R O RI Oval, in sink R ound, OTC Round, in sink 500 200 700 $58,000 H $24,000 $11,450 1154 (B) Divine consumed $22,000 of indirect materials during September. Divine incurred the following labor costs during September Job Hours Item Indirect Labo Direct Labor X 1,920 2,430 1,678 845 Amount $32,000 DY $34,560 $43,740 $29,365 $15,210 6873 The following comprises actual overhead costs (other than incurred during the month of September. cual overhead costs (other than supplies and indirect labor) of September.rid 10 nemes amount 169759915 olinamos oloa aboo 200 sto niort 197691 olas sd lliwungvon 20152 690 Ve Smoonia y Actual amount (for September) and nitrogo Supervision $18,400 ( 0) (COS Depreciation $32,650 Utilities $ 8,900 Factory rent 59 Tuoy yd be 15ws ad ll $15,400 no nobis mara E 75 350 Finally, Divine completed all jobs except Job B during September. It also sold the following items during the month of September. Model Units Sold 00 750 RI 200 OIRO 400 150 REQUIRED: 1. Compute the amount of under-over applied overhead for the me September and the year ended September 30. (10 pts.) September: Year: 2. Compute the ending balance of the Work in Process Inventory account at 9/30: (5 pts.) 3. Calculate the ending balance of Finished Goods Inventory for each model at 9/30 (use FIFO method). (20 pts.) Model 00: Model RI: Model OI: Model RO: 100 bis 2 2 00 batho Isus 29amonwalloon 4. Prepare an Income Statement for the month ended 9/30 (Assume that Sales Revenue will be 25% greater than total cost of Goods Sold, operating expenses are $20,000 and the company's income tax rate is 20%). (10 pts.)
