Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help me do all of this. 13-A2 Disposition of Overhead Penski Precision Tooling applies factory overhead using machine hours and numher of component parts
please help me do all of this.
13-A2 Disposition of Overhead Penski Precision Tooling applies factory overhead using machine hours and numher of component parts as cost-allocation bases. In 20X0, actual factory overhcad incurred was $125,(KX) and applied fac- tory overhead was $135,000. Before disposition of underapplied or overapplied factory overhead, the cost of goods sold was $525,000, gross profit was $60,000, and cnding inventories were as follows. Direct materials WIP Finished goods Total inventories $ 25,000 75,000 00,000 200,000 i. Was factory overhead overapplied or underapplied? By how much? 2. Assume that Penski writes off overapplied or underapplied factory overhead as an adjustment to 3. Assume that Penski prorates overapplied or underapplied factory overhead based on end-of-the- 4. Assume that actual factory overhead was $140,000 instead of $125,000, and that Penski writes off cost of goods sold. Compute adjusted gross profit. year unadjusted balances. Compute adjusted gross profit. overapplied or underapplied factory overhead as an adjustment to cost of goodsold. Compute adjusted gross profitStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started