Question
During May Company had following expenditures: indirect material used: $25,000 indirect labor: $12,000 factory utilities: $5,000 delivery vehicle insurance: $1,200 factory rent: $3,000 store rent:
During May Company had following expenditures:
indirect material used: $25,000
indirect labor: $12,000
factory utilities: $5,000
delivery vehicle insurance: $1,200
factory rent: $3,000
store rent: $18,000
Company allocate overhead based on labor hours. Predetermined MOH rate calculated as $24.50 per hour. Actual labor hours happened during May is 2,000 hours. Calculate actual and allocated overhead and adjust overhead at the end of May. Company has following balances as of May 31;
WIP Inventory: $25,000
Finished Goods: $15,000
COGS: $120,000
Close underallocated or overallocated overhead to WIP, Finished Goods and COGS.
During May Company had following expenditures:
indirect material used: $25,000
indirect labor: $12,000
factory utilities: $5,000
delivery vehicle insurance: $1,200
factory rent: $3,000
store rent: $18,000
Company allocate overhead based on labor hours. Predetermined MOH rate calculated as $24.50 per hour. Actual labor hours happened during May is 2,000 hours. Calculate actual and allocated overhead and adjust overhead at the end of May. Company has following balances as of May 31;
WIP Inventory: $25,000
Finished Goods: $15,000
COGS: $120,000
Close underallocated or overallocated overhead to WIP, Finished Goods and COGS.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
