Q Inc. has provided the following data concerning last month's operations. Assume that overhead is allocated on the basis of DIRECT LABOR COST using a plantwide overhead rate. Also assume that any under/overapplied overhead is adjusted to COGS.
	Direct labor cost					$ 50,000
	Predetermined overhead rate					$ 2.00	per DLH
	Total actual overhead					$ 106,000
				Beginning	Ending
	Raw materials inventory			$ 18,000	$ 12,000
	Work in process inventory			$ 64,000	$ 46,000
	Finished goods inventory			$ 32,000	$ 40,000
LO3-1,2,3 ( point) Compute the direct materials used in production
	raw materials beginning			18,000
	Raw materials purchased			35,000
				53,000
				-12,000
	Cost of direct materials used in production			41,000
LO3-4 ( point each) Compute the under/overapplied overhead amount. Label the computed amount as either an underapplied or overapplied OH. Then, prepare the adjusting entry using T-accounts or journal entries.
LO3-1,2,3 ( point) Compute the cost of goods sold (after any adjustments for under/overapplied OH)
LO3-4 ( point) Regardless of your responses above, assume that there is an overapplied overhead amount. Will the adjusting entry to clear the overhead account increase, not affect, or decrease COGS? Briefly explain. No computations necessary.

Inc. has provided the following data concerning last month's operations. Assume that overhead is allocated on the basis of DIRECT LABOR COST using a plantwide overhead rate. Also assume that any under/overapplied overhead is adjusted to COGS. Direct labor cost Predetermined overhead rate Total actual overhead $ 50,000 $ 2.00 per DLH $ 106,000 Raw materials inventory Work in process inventory Finished goods inventory Beginning Ending $ 18,000 $ 12,000 $ 64,000 $ 46,000 $ 32,000 $ 40,000 LO3-1,2,3 (% point) Compute the direct materials used in production raw materials beginning 18,000 Raw materials purchased 35,000 53,000 -12,000 it of direct materials used in producti 41,000 LO3-4% point each) Compute the under/overapplied overhead amount. Label the computed amount as either an underapplied or overapplied OH. Then, prepare the adjusting entry using T-accounts or journal entries. L03-1,2,3 % point) Compute the cost of goods sold (after any adjustments for under/overapplied OH) LO3-4% point) Regardless of your responses above, assume that there is an overapplied overhead amount. Will the adjusting entry to clear 2 the overhead account increase, not affect, or decrease COGS? Briefly explain. No computations necessary. + Inc. has provided the following data concerning last month's operations. Assume that overhead is allocated on the basis of DIRECT LABOR COST using a plantwide overhead rate. Also assume that any under/overapplied overhead is adjusted to COGS. Direct labor cost Predetermined overhead rate Total actual overhead $ 50,000 $ 2.00 per DLH $ 106,000 Raw materials inventory Work in process inventory Finished goods inventory Beginning Ending $ 18,000 $ 12,000 $ 64,000 $ 46,000 $ 32,000 $ 40,000 LO3-1,2,3 (% point) Compute the direct materials used in production raw materials beginning 18,000 Raw materials purchased 35,000 53,000 -12,000 it of direct materials used in producti 41,000 LO3-4% point each) Compute the under/overapplied overhead amount. Label the computed amount as either an underapplied or overapplied OH. Then, prepare the adjusting entry using T-accounts or journal entries. L03-1,2,3 % point) Compute the cost of goods sold (after any adjustments for under/overapplied OH) LO3-4% point) Regardless of your responses above, assume that there is an overapplied overhead amount. Will the adjusting entry to clear 2 the overhead account increase, not affect, or decrease COGS? Briefly explain. No computations necessary. +