Touch Enterprises produces LCD touch screen products. The company reports the following information at December 31. Touch Enterprises began operations on January 31 earlier that same year.

Requirements
1. What is the cost of direct materials used?
2. What is the cost of indirect materials used?
3. What is the cost of direct labor?
4. What is the cost of indirect labor?
5. What is the cost of goods manufactured?
6. What is the cost of goods sold (before adjusting for any under- or overallocated manufacturing overhead)?
7. What is the actual manufacturing overhead?
8. How much manufacturing overhead was allocated to jobs?
9. What is the predetermined manufacturing overhead rate as a percentage of direct labor cost?
10. Is manufacturing overhead underallocated or overallocated? By how much?

Transcribed Image Text:

Raw Materials Inventorv Work in Process Finished Goods Wages Payable Inventory Overhcad Inventory 1,000 126,500 72,000 72,000 61,000 600 1,000 46,000 126,500 114,500 57,500 32,000 11,000 41,000 Balance 0