Question

Chapter 19 facturer of art and craft items: 1. The following information is available for the first month of operations of Url Inca manufacturer of art and a Sales $1,231,000 Gross profit 332.400 Indirect labor 110,800 Indirect materials 45,500 Other factory overhead 20 900 Materials purchased 627,800 Total manufacturing costs for the period 1,359,000 Materials inventory, end of period 45,500 Factory overhead was applied during the year. Using the above information, determine the following missing amounts: a. Cost of goods sold b. Direct materials cost e Direct labor cost 2. Barley Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs drugs and medical devices, physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be Disposable supplies 5170,800 Depreciation expense 30,800 Unities 17.900 Nurse salaries 256,500 Technician wages 84,000 Total operating room overhead $500.000 The overhead costs will be assigned to procedures based on the number of surgical room hours. Barley Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. a. Determine the predetermined operating room overhead rate for the year. $ per hour b. Gretchen Kelton had a 7 hour procedure on anary 15. How much operating room overhead would be charged to her procedure, using the rate determined in part(a)? $ During January, the operating room was used 185 hours. The actual overhead costs incurred for anuary were $36,400. Determine the overapplied operating overhead or underapplied operating overhead for the period. Enter your answer as a positive number over or underapplied? 3. The following events took place for Chi-ute Inc. during June 2016, the first month of operations as a producer of road bikes • Purchased $399,560 of materials • Used $342,540 of direct materials in production Incurred $290,100 of direct labor wages. • Applied factory overhead at a rate of 73% of direct labor cost. • Transferred $818,820 of work in process to finished goods. • Sold goods with a cost of $796.000 • Sold goods for $1,400,110 incurred $313.290 of selling expenses incurred $125.090 of administrative expenses Prepare the lune income statement for Chi-Lite Determine the inventory balances at the end of the first mo

Answer 1

1.

a. Cost of goods sold = Sales - Gross profit

Cost of goods sold = $1,231,000 - 332,400 = $898,600

b. Direct material cost = Material purchased - Material inventory at the end - Indirect material

Direct material cost = $627,800 - 45,500 - 45,500 = $536,800

c. Direct labor cost = Total manufacturing costs - Direct material - Factory overhead

Direct labor cost = $1,359,000 - 536,800 - 177,200 (110,800+45,500+20,900) = $645,000