Class Problem $1-$ Sue Enterprises

Sue Enterprises uses a normal job$-$order costing system and a predetermined overhead rate based on machine hours. At the beginning of $2020,$ Sue estimated the overhead for the year would be $\backslash$$$720,000$ and that production would use $90,000$ machine hours. The following information relates to the month of August when $2$ jobs were worked on:

Answer the following questions:

$1.$ If direct materials inventory had a beginning balance of $\backslash (\backslash$$ $5,000\backslash )$ and purchases of $\backslash (\backslash$$ $50,000\backslash ),$ what is the ending balance of direct materials inventory?

$2.$ If actual overhead in August was $\backslash (\backslash$$ $35,000\backslash ),$ was overhead underapplied or overapplied? By how much?

$3.$ What was the cost of Job $126?$

$4.$ Assume Job $125$ and $126$ were finished this period. What is the cost of goods manufactured?

$5.$ Assume finished goods inventory had a beginning balance of $\backslash (\backslash$$ $30,000\backslash ).$ What is cost of goods available for sale?

$6.$ Assume that Job $125$ was sold for $\backslash (\backslash$$ $90,000\backslash )$ this period. What was cost of goods sold for the period?

$7.$ Was is the gross profit on Job $125?$