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In: Accounting

Work in Process Wages Manufacturing Finished Goods Raw Materials Inventory Payable Overhead Inventory Inventory 28,500 124,500...

Work in Process		Wages		Manufacturing		Finished Goods		Raw Materials
Inventory		Payable		Overhead		Inventory		Inventory
28,500	124,500	73,000	73,000	4,500	43,000	124,500	113,500	57,000	33,000
65,000				8,000
43,000		Balance 0		40,500

Unique produces screens for use in various smartphones. The company reports the following information at December 31.

Unique began operations on January 31 earlier that same year.

1.

What is the cost of direct materials used?

2.

What is the cost of indirect materials used?

3.

What is the cost of direct labor?

4.

What is the cost of indirect labor?

5.

What is the cost of goods manufactured?

6.

What is the cost of goods sold (before adjusting for any under- or overallocated manufacturing overhead)?

7.

What is the actual manufacturing overhead?

8.

How much manufacturing overhead was allocated to jobs?

9.

What is the predetermined manufacturing overhead rate as a percentage of direct labor cost?

10.

Is manufacturing overhead underallocated or overallocated? By how much?

Expert Solution

1) Cost of direct materials used is $28500 .

(Direct materials used come on the debit side of work in process inventory )

2) Cost of indirect materials used is $4500

(It is the first debit in the T account of Manufacturing overhead is of the indirect materials used)

3) Cost of direct labour is $65000

( The second debit in the T account in Work in process inventory)

4) Cost of indirect labour is $8000

( The second debit in the manufacturing overheads account)

5) Cost of goods manufactured is $124500

(The debit side of finished goods inventory )

6) Cost of goods sold before adjustment is $ 113500

(The credit side of finished goods inventory is cost of goods sold before adjustment)

7) Actual manufacturing overhead = $40500 + $8000 + $4500 = $53000

8) Mnaufacturing overhead allocated to the job $43000

(The credit side of manufacturing overhead)

9) Predetermined overhead allocated to the job as a percentage of direct labour cost = $43000/$65000*100

66.158%

10) Mnaufacturing overhead is underallocated by $43000-$53000 =$10000

ekkarill92 answered 1 year ago

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