LO 2) Calculate the cost of goods manufactured using the following information: Direct materials $299, 800 Direct labor 133, 300 Factory overhead costs 265, 300 General and administrative expenses 86, 800 Selling expenses 50, 100 Work in Process inventory, January 1 119, 800 Work in Process inventory, December 31 127, 200 Finished goods inventory, January 1 233, 400 Finished goods inventory, December 31 240, 000(L0 2} A company's overhead rate is 200% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used. Hork in Process Inventory Beginning NIP 60,000 Direct Materials ? Direct Labor ? Applied Overhead ? To Finished Goods ? Ending In'l'IP 70,000 Factory Overhead 148,000' 150,000 Finished Goods Inventory Beginning F0 50,000 275,000 Ending FE 45,000 280,000 {LO 3) A company uses activitybased costing to determine the costs of its three products: A. B. and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Product c Activity 1 $ 79, 333 6, 933 9, 933 23, 933 Activity 2 $ 54, 333 7, 933 15, 933 8, 933 Activity 3 $133, 333 3, 433 1, 933 2, 525 How much overhead will be assigned to Product 8 using activitybased costing? {LOI 3] A company has two products: A and B. It uses activitybased costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Budgeted Activity Act1v1ty Cost Budgeted Product A Product B Pool Cost Activity 1 $88, 333 3, 133 2, 933 Activity 2 $53,333 4,633 5,633 Activity 3 $95, 333 2, 633 5, 353 Annual production and sales level of Product A is 34.430 units, and the annual production and sales level of Product 8 is 69,653 units. What is the approximate overhead cost per unit of Product B under activitybased costing? f The foilowing information applies to the questions displayed beiowj {L0 3] Angle Max Industries produces a product which goes through two operations, Assembly and Finishing. before it is ready to be shipped. Next year's expected costs and activities are shown below. Assembly Finishing Direct labor hours 399, 999 DLH 169, GIGS DLH Machine hours 533, 833 PM 153, 383 MH Overhead costs $566, EDD $866. BBB {LO 3] Assume that the Assembly Department allocates overhead based on machine hours. and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 2 direct labor hour and 4.5 machine hours in the Assembly Department, and 4.6 direct labor hours and 0.5 machine hours in the Finishing Department? {LO 7) Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: January February March $ Haterlal purchases 12:94@ 15,053 11,873 Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $7500. The expected January 31 Accounts Payable balance is
