1. BenCo makes and sells pots. the manufacturing process has two stage : Fabrication and Painting. The pots are fabricated in one building and then transferred to painting shed to the finished. When the paint has cured, the pots are transferred to the finished pot showroom.

manufacturing overhead is applied to the Fabrication area based on DL Hours incurred in the paint area.

expected paint DL Hours for January 2016-220 DL hours.

Expected paint overhead- $4620

Beginning and ending inventory balance for January

materials inventory fabrication WIP Painting WIP Finished pots inventory

1/1/16 $5000 $1000 $2000 $3000

1/31/16 $4000 $2000 $1000 $5000

During January of 2016:

BenCo purchased $30,000 of materials

Incurred $11,000 of direct labor( 550 DL Hours@ $20 per DL Hours) in the fabrication area

Incurred $5000 ( 200 DL Hours @ $25 per DL Hours) in the paint area

incurred manufacturing overhead in the fabrication area totaling $24,000

incurred manufacturing overhead in the paint area totaling $4000

Required

a. what is cost of goods manufactured for January 2016?

b. what is cost of goods sold for January 2016 before closing any over/under applied overhead to COGS?

c. what is COGS if any over/under applied overhead is closed to COGS?