Quinto Inc., which operates a normal costing system, provides the following data for its most recent year
Question:
Quinto Inc., which operates a normal costing system, provides the following data for its most recent year of operations.
• Opening WIP (which had just one job) was valued at $2,100 for materials and $4,000 for labor.
• Costs added to WIP included $45,000 for materials and $70,000 for labor.
• The cost of goods manufactured was $195,000.
• Opening FG inventory was valued at $12,500.
• Ending FG inventory was valued at $14,420.
• Actual overhead was $97,500
• Manufacturing overhead is applied at 125% of labor cost. Any under / over applied overhead is prorated to the relevant accounts.
Determine the following. (Round computations to four decimal places).
Value of opening WIP (before proration) | Amount of under / over applied overhead | ||
Value of ending WIP (before proration) | Overhead is under / over applied (circle your choice) | Under applied / Over applied | |
Unadjusted COGS (before proration) | Adjusted COGS (after proration) |
Managerial Accounting
ISBN: 978-1118385388
2nd edition
Authors: Ramji Balakrishnan, Konduru Sivaramakrishnan, Geoff B. Sprinkle