Question

LCDs For You produces screans for use in various smartphones. The company reports the following information at December 31. LCDs For You began operations on January 31 earlier that same year (Click the icon to view additional information.) Read the equirements Requirement 1. What is the cost of direct materials used? The cost of direct materials used is $ 30,000 Requirement 2. What is the cost of indirect materials used? The cost of indirect materials used is $ Requirement 3. What is the cost of direct labor? The cost of direct labor is $60,000 Requirement 4. What is the cost of indirect labor? The cost of indirect labor is 20,000 Requirement 5. What is the cost of goods manufactured? The cost of goods manufactured is $ 126,500 Requirement 6. What is the cost of goods sold (before adjusting for any under- or overallocated manufacturing overhead)? The cost of goods sold (before adjusting for any under- or overallocated manufacturing overhead) is $ More Info Work in Process Wages Payable Manufacturing Finished Goods Inventory Raw Materials Inventory Overhead Inventory 30,000 126,500 80,000 80,000 3,50043,000 126,500 114,000 57,00033,500 3,500 20,000 43,000 Balance 0 41,000 Requirements 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 predetemined manufacturing overhead rate as a percentage of direct labor cost? 10. Is manufacturing overhead underallocated or overallocated? By how much? Print Done

Answer 1

6) Cost of goods sold (before adjusting for any under or over allocated manufacturing overhead) is $114000

7) Actual manufacturing overhead = 41000+20000+3500 = $64500

8) Manufacturing overhead allocated to job = $43000

9) Predetermine manufacturing overhead rate = 43000/60000 = 71.67% of direct labor cost

10) Manufacturing overhead is under allocated by = (43000-64500) = $21500