Deckhand Accessories, Inc., manufactures womens boating shoes. Manufacturing overhead is assigned to production on a machine-hour basis.
Question:
Required:
a. Calculate the predetermined overhead application rate that will be used for absorption costing purposes during 2010.
b. During May, 11,720 pairs of shoes were made. Raw materials costing $56,936 were used, and direct labor costs totaled $57,600. A total of 5,680 machine hours were worked during the month of May. Calculate the cost per pair of shoes made during May.
c. At the end of May, 3,156 pairs of shoes were in ending inventory. Calculate the cost of the ending inventory and the cost of the shoes sold during May.
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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Related Book For
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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