The following data relates to the operation of Cambridge Manufacturing Company for the year ended December 31st, 2015:

Sales $608,600 Direct Labor $90,000
Purchases of Raw Material 315,500 Indirect Labor 15,000
Return of Raw Material 13,000 Indirect Material 16,000
Freight in 5,000 Factory Rent 20,200
Foreman’s Salary 30,000 Selling and Admin. Expenses 35,000
Factory Insurance 7,000 Bad debt Expense 1,500

Inventories January 01, 2015, December 31st, 2015
Raw Materials $30,000 68,000
Work in process 40,000?
Finished Goods 70,000 56,000
The company assigns FOH on the basis of Direct Labor Cost.

Required:
a. Determine FOH Rate
b. Compute the Cost of WIP on December 31st, 2015
c. Prepare Statement of Cost of Goods Manufactured and Income Statement for 2015

Answer rating: 100% (QA)

a FOH Rate FOH applied to direct labor cost applied to indirect labor cos... View the full answer