StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March:
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Ending Inventory Raw materials Work in process Finished goods Beginning Inventory $28,500 22,400 79, 100 $26,800 46,000 69,700 Additional information for the month of March follows: Raw materials purchases Indirect materials used Direct labor Manufacturing overhead applied Selling, general, and administrative expenses Sales revenue $ 40,000 1,200 62,500 36,200 23,900 236,600 Required: 1. Based on the above information, prepare a cost of goods manufactured report. 2. Based on the above information, prepare an income statement for the month of March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on the above information, prepare a cost of goods manufactured report. STORSMART COMPANY Cost of Goods Manufactured Report For the Month of March Direct Materials used in Production Total Current Manufacturing Costs Total Work in Process Cost of Goods Manufactured Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on the above information, prepare an income statement for the month of March. STOR SMART COMPANY Income Statement For the Month of March Less: Cost of Goods Sold Cost of Goods Sold Net Income (Loss) from Operations Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $219,450 and total machine hours at 62,700. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 Job 102 Job 103 Total $10,600 $ 8,800 $5,500 $ 24,900 $ 16,600 $ 5,200 $ 6,000 $ 27,800 1,200 hours 2,600 hours 600 hours 4,400 hours Job 101 was completed and sold for $50,800. Job 102 was completed but not sold. Job 103 is still in process Actual overhead costs recorded during the first month of operations totaled $14,000. Required: 1. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) 2. Compute the total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations. (Round your intermediate calculations to 2 decimal places.) 3. Compute the balance in the Work in Process Inventory account at the end of the first month. (Round your intermediate calculations to 2 decimal places.) 4. How much gross profit would the company report during the first month of operations before making an adjustment for over- or underapplied manufacturing overhead? (Round your intermediate calculations to 2 decimal places.) 5-a. Determine the balance in the Manufacturing Overhead account at the end of the first month. (Round your intermediate calculations to 2 decimal places.) 5-b. Is it over- or underapplied? per Machine Hour 1. Predetermined Overhead Rate 2. Total Applied Manufacturing Overhead 3. Ending Work in Process Inventory 4. Gross profit 5-a. Balance 5-b. Is it over- or underapplied
