1.

2. Exercise 6-43 (Algo) Predetermined Overhead Rates and Product Profitability (LO 6-3, 4)

Exercise 6-34 (Algo) Basic Product Costing (LO 6-3) Luke's Lubricants starts business on January 1. The following operations data are available for January for the one lubricant It produces. Gallons Beginning inventory 8 Started in January 163,000 19,000 Ending work-in-process inventory (80% complete) Costs Incurred in January follow. Materials $ Labor 98,000 25,000 76,000 Manufacturing overhead All production at Luke's is sold as it is produced (there are no finished goods Inventories). Required: a. Compute cost of goods sold for January. (Do not round Intermediate calculations.) b. What is the value of work-in-process Inventory on January 31? (Do not round Intermediate calculations.) a. Cost of goods sold for January b. Work-in-process inventory on January 31 Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who are looking for tutoring services, and TiX, which can be used to buy, sell, or exchange event tickets. For the following year, SMI expects the following results. Toot! Tix Total Users Revenues 13,100 20,100 $ 1,800,000 $1,760,000 9,300 7,300 Engineering hours Engineering cost 33,200 $ 3,560,000 16,600 $ 1,494,000 $ 1,195,200 $ 687,750 $ 806,250 Administrative costs Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the number of users to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service? Complete this question by entering your answers in the tabs below. Required A Required B Based on the rates computed in requirement (a), what is the profit for each service? Service Profit Toot! Tix