1.Based on the data above. What is the cost of goods manufactured during the current year?2.Based on the data above. What is the over or under application of overhead? Vios Company employs norma!costing for its production. thefollowing data are providedduring the current year:Net purchases of raw materials during the yearTotal labor costs during the yearDepreciation of factory assets during the yearUtilities on the factory during the year500,000800,000100,000300,000BeginningEndingRaw materials inventoryWork in process inventoryFinished goods inventory200,000500,000600,000300,000200,000300,000The entity uses a single account for its direct material and indirect materials. Indirect materialused is one-fourth of the total material used.The indirect labor cost is 1/8 of the total labor costs.The overhead application rate is 80% of direct labor costs.Any over or under application of overhead is considered material.

The overhead is underapplied when actual overhead is more than the applied overhead and vice versa.

500,000 800,000 100,000 300,000 Ending 300,000 200,000 300,000 Net purchases of raw materials during the year Total labor costs during the year Depreciation of factory assets during the year Utilities on the factory during the year Beginning Raw materials inventory Work in process inventory Finished goods inventory 200,000 500,000 600,000 The entity uses a single account for its direct material and indirect materials. Indirect material. used is one-fourth of the total material used. The indirect labor cost is 1/8 of the total labor costs. The overhead application rate is 80% of direct labor costs. Any over or under application of overhead is considered material.

500,000 800,000 100,000 300,000 Ending 300,000 200,000 300,000 Net purchases of raw materials during the year Total labor costs during the year Depreciation of factory assets during the year Utilities on the factory during the year Beginning Raw materials inventory Work in process inventory Finished goods inventory 200,000 500,000 600,000 The entity uses a single account for its direct material and indirect materials. Indirect material. used is one-fourth of the total material used. The indirect labor cost is 1/8 of the total labor costs. The overhead application rate is 80% of direct labor costs. Any over or under application of overhead is considered material.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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