1). For September = $14,983 | |||||
For the year = $27,148 | |||||
Worksheet | |||||
Under/overapplied overhead = applied overhead – actual overhead. | |||||
Till September: | |||||
Actual overhead | $1,569,450 | ||||
Applied overhead | $1,581,615 | $21/labor hour × 75,315 labor hours | |||
Overapplied OH | $12,165 | ||||
Item | Amount | ||||
Opening balance (September 1) | -12,165 | ||||
Supplies | $22,000 | ||||
Indirect labor | 32,000 | ||||
Supervision | 18,400 | ||||
Depreciation | 32,650 | ||||
Utilities | 8,900 | ||||
Factory rent | 15,400 | ||||
Applied overhead | -144,333 | ||||
Ending balance | ($27,148) | ||||
overapplied overhead of $27,148 as of September 30. | |||||
Actual overhead for September | $129,350 | ||||
Applied overhead for September | $144,333 | ||||
Overapplied overhead | ($14,983) | ||||
the total overapplied overhead is $27,148 = $12,165 + $14,983. | |||||
2). Ending balance of WIP -Sepember | $44,405 | ||||
Job number | X | K | L | B | Total |
Model | OO | OI | RO | RI | |
Description | Oval, OTC | Oval, | Round, OTC | Round, | |
in sink | in sink | ||||
Units | 700 | 500 | 200 | 700 | |
Labor hours | 1,920 | 2,430 | 1,678 | 845 | 6,873 |
Beginning Balance | $124,320 | $124,320 | |||
Raw materials | 22,000 | $58,000 | $24,000 | $11,450 | 115,450 |
Labor | 34,560 | 43,740 | 29,365 | 15,210 | 122,875 |
Overhead1 | 40,320 | 51,030 | 35,238 | 17,745 | 144,333 |
Total | 221,200 | 152,770 | 88,603 | 44,405 | |
Cost per unit | $316 | $305.54 | $443.02 | NA | |
1Overhead rate of $21 per labor hour x number of labor hours. | |||||
Summary | |||||
Beginning Balance – WIP | $124,320 | ||||
Raw materials | 115,450 | ||||
Labor | 122,875 | ||||
Overhead | 144,333 | ||||
Completed: X | -221,200 | ||||
Completed: K | -152,770 | ||||
Completed: L | -88,603 | ||||
Ending balance – WIP | $44,405 | ||||
3) | |||||
Model OO | 15,800 | ||||
Model RI | 39,450 | ||||
Model OI | 167,670 | ||||
Model RO | 22,150.75 | ||||
Model | OO | RI | OI | RO | Total |
Units | |||||
Beginning inventory | 100 | 400 | 450 | 0 | |
Added this period | 700 | 0 | 500 | 200 | |
Sold in September | 750 | 200 | 400 | 150 | |
Ending inventory | 50 | 200 | 550 | 50 | |
Beginning Balance | $32,000 | $78,900 | $134,100 | 0 | $245,000 |
From WIP | 221,200 | 0 | 152,770 | 88,603 | $462,573 |
Sold (see detail) | 237,400 | 39,450 | 119,200 | 66,452.25 | $462,502 |
Ending inventory | 15,800 | 39,450 | 167,670 | 22,150.75 | $245,071 |
4). | |||||
Income statement is prepared with the data provided | |||||
Income Statement | |||||
Sales Revenue | 25% higher than of COGS | $578,128 | |||
Cost of Goods sold | $462,502 | ||||
Gross Profit | $115,626 | ||||
Operating expenses | $20,000 | ||||
$95,626 | |||||
Tax Expenses | 20% | $19,125 | |||
Net Profit | $76,500 | ||||
Divine Bath Works is a leader in the bath fixtures industry, rising to prominence with the...
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