At the beginning of the year, overhead costs and workload was estimated. Direct Labor hours drives the
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Question:
At the beginning of the year, overhead costs and workload was estimated. Direct Labor hours drives the cost of overhead.
Estimated Overhead Cost | $ 90,000 |
---|---|
Estimated Direct Labor Hours | 1,500 |
By month's end, all previous jobs were completed, but only 80% of the pots started this month were completed. $22,000Total Sales
90% of the previous batch of pots were sold, while 70% of the pots completed this month were sold.
Required:
- Complete the T-Accounts below.
- Determine the Cost of Goods Manufactured.
- Complete journal entry to dispose of the Over/Underapplied Overhead.
- Determine the Cost of Goods Sold after disposing of the Over/Underapplied Overhead.
- Determine the Gross Profit for the month.
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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