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Psaki, Inc. makes and sells Fakes. Manufacturing Overhead is applied based on Direct Labor (DL) Hours incurred. Expected DL Hours for January 2022-1,900 DL
Psaki, Inc. makes and sells Fakes. Manufacturing Overhead is applied based on Direct Labor (DL) Hours incurred. Expected DL Hours for January 2022-1,900 DL Hours Expected Overhead for January 2022 - $146,300 Beginning and ending inventory balances for January: Materials Inventory 1/1/22 1/31/22 $15,000 13,000 WIP Finished Fakes Inventory $52,000 $25,000 55,000 19,000 During January of 2022: Psaki, Inc. purchased $53,000 of Materials Incurred $48,025 of Direct Labor (1,921 DL Hours @ $25 per DL Hour) Incurred Manufacturing Overhead totaling $148,350 Required: What is Cost of Goods Manufactured for January 2022? What is Cost of Goods Sold for January 2022 before closing any over/under applied overhead to COGS? What is COGS if any over/under applied overhead is closed to COGS? . What is Psaki, Inc.'s January gross profit if they sold the finished Fakes for $300,000?
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