Raw Materials- 45,000 Work in Process- 20,000 Finished Goods- 40,000

The company uses a plant wide rate to apply overhead. The overhead rate was based on an estimated over head cost of $640,000 and an estimated level of activity of 32,000 direct labor hours. This is all the information the professor requested we use.

2. What is the ending balance in Raw Materials?

4. What is the total amount of manufacturing overhead applied to production during the year?

5. What is the total manufacturing cost added to Work in Process during the year?

7. What is the ending balance in Work in Process?

8. What is the total amount of actual manufacturing overhead cost incurred during the year?

9. Is manufacturing overhead under applied or over applied for the year? By how much?

10. What is the cost of goods available for sale during the year?

12. What is the ending balance in Finished Goods?

13. Assuming that the company closes its under applied or over applied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year?

14. What is the gross margin for the year? 15. What is the net operating income for the year?