Question: please help with chapter 5 question p5-34 for managerial accounting, 8th edition, Hartgraves and Morse. LO2,4 P5-34. Performanc Group Ltd. Cost of Goods Manufactured and
please help with chapter 5 question p5-34 for managerial accounting, 8th edition, Hartgraves and Morse.
LO2,4 P5-34. Performanc Group Ltd. Cost of Goods Manufactured and Income Statement with Predetermined Overhead and Labor Cost Classifications Assume information pertaining to Performance Sports Group Ltd. for April 2017 follows. Sales..... $250,000 Purchases Raw materials. 40,000 Manufacturing supplies 800 Office supplies 500 Salaries (including fringe benefits) Administrative.. 6,000 Production supervisors. 3,600 Sales... 15,000 Depreciation Plant and machinery. 8,000 Office and office equipment. 4,000 Utilities Plant 5,250 Office 890 April 30 Inventories Raw materials. Manufacturing supplies Office supplies Work-in-process. Finished goods. April 1 $8,000 2,000 1,900 4,000 9,000 $ 9,000 2,300 1,600 4,500 10,200 Additional information follows: Manufacturing overhead is applied to products at 85 percent of direct labor dollars. Employee base wages are $12 per hour. Employee fringe benefits amount to 40 percent of the base wage rate. They are classified as manufacturing overhead. During April, production employees worked 5,600 hours, including 4,800 regular hours and 200 overtime hours spent working on products. There were 600 indirect labor hours. Employees are paid a 50 percent overtime premium. Any overtime premium is treated as manufacturing overhead. Required a. Prepare a statement of cost of goods manufactured and an income statement for April. b. Determine underapplied or overapplied overhead for April. c. Recompute direct labor and actual manufacturing overhead assuming employee fringe benefits for direct labor hours are classified as direct labor
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