Question
Part A Ziggy Company manufactures quality gentlemen's clothing. The following selected financial information for the fiscal year 2020 is provided: Item Amount Sales $100,000 Cost
Part A
Ziggy Company manufactures quality gentlemen's clothing. The following selected financial information for the fiscal year 2020 is provided:
Item | Amount |
Sales | $100,000 |
Cost of Goods Manufactured | 75,000 |
Direct Material Purchased | 30,000 |
Factory Overhead | 10,000 |
Work in Process - January 1 | 30,000 |
Work in Process - December 31 | 15,000 |
Direct Material - December 31 | 10,000 |
Total Manufacturing Cost | 60,000 |
Net Income | 15,000 |
Direct Materials used | 30,000 |
Cost of Goods Sold | 55,000 |
Use this information to prepared a detailed Schedule of Costs of Goods Manufactured for FY 2020: (Round dollar values & enter as whole dollars only.)
Part B
During March 2020, Kesha Corporation recorded $22,000 of costs related to factory overhead. Kesha's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $20,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 10,200 hours were actually worked. Use this information to determine (round & enter any final dollar answers to the nearest whole dollar):
1. the amount of factory overhead that was applied in March
2. the amount of factory overhead that was over or under applies
3. was the factory overhead was over applied or under applied
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