Homework Answers
Answer is as follows:
1. Estimated overhead costs divided by estimated allocation base (eg direct labour hours)
2. True
3. $150000
Cost of Goods Sold = Cost of Goods manufactured + Beginning Finished Goods inventory - Ending Finished goods inventory : $200000+$50000-$100000 = $150000
4. True
5. $22250
Total cost = $20000 + ($60000 / 4000)*150 hours
= $20000 + $2250 = $22250
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