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PROBLEM 2 ( 3 5 % ) The following is Kokona Company's inventory balance on February 1 , 2 0 2 4 : WIP Inventory
PROBLEM
The following is Kokona Company's inventory balance on February :
WIP Inventory includes the following three jobs:
Finished goods inventory is Job which was completed at the end of January
During February, Kokona Company made the following transactions:
a Purchased raw materials on credit amounting to IDR
b Use direct materials for:
Job
Job
Job
c Collect job tickets for direct labor:
Job hours, with wages Rp per hour of direct labor
Job hours, with wages Rp per hour of direct labor
Job hours, with wages Rp per hour of direct labor
d Overhead is allocated to Jobs based on direct labor costs.
e Actual overhead costs were totalling Rp
f Complete and transfer Job to the finished goods warehouse.
g Send Jobs and to the customer and bill at percent of production costs.
h Adjustments for overunderapplied to the COGS account are made at the end of
each month.
Required:
Calculate the predetermined overhead rate.
Calculate the ending balance of materials inventory at the end of February
Calculate the ending balance for Job Job and Job at the end of February
Calculate the WIP inventory balance at the end of February
Determine the amount of overunderapplied overhead for February
Calculate the reported gross profit for February
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