ClearDay Displays produces screens for use in various smart phones. The company reports the following information at December 31. ClearDay Displays began operations on January 31 earlier that same year.

Requirements
1. What is the cost of direct materials used?
2. The cost of indirect materials used?
3. What is the cost of direct labor?
4. 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 over-allocated 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 under-allocated or over-allocated? By how much?

Transcribed Image Text:

Finished Goods Inventory 123,500 115,500 Work in Process Inventory 30,500 123,500 64,000 43,000 Manufacturing Overhead 4,000 43,000 13,000 40,500 Wages Payable Raw Materials Inventory 57,500 34,500 77,000 77,000 Balance 0