Jean-Pierre, Inc. makes and sells Fakes. Manufacturing Overhead is applied based on Direct Labor (DL)Hours incurred.Expected DL Hours for October 2023 - 1,800 DL HoursExpected Overhead for October 2023 - $144,000Beginning and ending inventory balances for October:Materials Inventory10/1/2310/31/23$25,00028,000WIP Finished Fakes Inventory$55,000$22,00050,00029,000During October of 2023:•Jean-Pierre, Inc. purchased $55,000 of MaterialsIncurred $57,350 of Direct Labor (1,850 DL Hours @ $31 per DL Hour)•.Incurred Manufacturing Overhead totaling $147,000Required:What is Cost of Goods Manufactured for October 2023?What is Cost of Goods Sold for October 2023 before closing any over/under applied overhead toCOGS?What is COGS if any over/under applied overhead is closed to COGS?What is Jean-Pierre, Inc.'s October gross profit if they sold the finished Fakes for $350,000?

The objective of the question is to calculate the Cost of Goods Manufactured (COGM), Cost of Goods…

Answered: Jean-Pierre, Inc. makes and sells…

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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Yamishi Production had the following inventories for the first quarter of 2022: MaterialsWork in process Finished goods Beginning $606,600 312,100 416,100 Ending $522,100 280,800 540,200 Purchases of materials during the quarter were $427,800. Total direct labor costs were incurred in the amount of $1,482,000. Actual overhead costs were incurred as follows: operating supplies used, $17,100; janitorial and maintenance, $87,300; employee benefits, $26,400; utilities, $162,000; depreciation of factory, $43,200; property taxes, $24,000; factory insurance, $29,000. Net sales for the quarter were $3,562,200. Selling and administrative expenses were $508,000. Income taxes should be computed at 40 percent. Calculate cost of goods manufactured. 6. Company produces small boats. Each boat uses 2 sheets of direct materials at $3 a sheet, it takes 2 hours to finish one boat and hourly rate is $5, factory utilities and supervision cost $6 per boat and variable cost amounts to $2 per direct labor…
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