Assume Addis Company uses a job-order costing system and applies overhead based on direct materials used in
Question:
Assume Addis Company uses a job-order costing system and applies overhead based on direct materials used in production. For the recent year it estimated that Birr 200,000 of manufacturing overhead will be incurred and Birr 150,000 of direct materials will be used. The following data were taken from the company’s books:
Beginning Ending
Raw Materials (all direct) Birr 30,000 Birr 10,000
Work in Process Birr 45,000 Birr 35,000
Finished Goods Birr 20,000 Birr 25,000
Costs incurred during the year:
Purchases of raw materials (direct) Birr 90,000
Direct Labor Birr 40,000
Actual overhead Birr 150,000
Required
- The amount of manufacturing overhead applied to Work in Process is:
- The under or over applied overhead is:
- The cost of goods sold (including any under or over applied overhead) is:
- The amount of cost of goods manufactured during the year is:
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer