Company A has the following data: Prime costs are 180% of direct materials costs. DM costs for
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Question:
Company A has the following data:
Prime costs are 180% of direct materials costs. DM costs for year 20xx are $ 100,000. The company had estimated the overhead costs to be $400,000 and the estimated DL costs were $100,000. The company uses DL cost to allocate overhead costs to products.The actual overhead costs for the year 20xx are $360,000.
Assume that there are no beginning inventories. The ending WIP for 20xx was valued at $ 50,000.Assume that all the finished goods available were sold.
- What is the OH rate?
- What are the total applied OH costs?
- Calculate the COGM.
- Calculate the under/over - applied OH costs
- Assuming all the under/over - applied OH costs are adjusted to COGS, calculate the adjusted COGS.
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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