Problem#5 Oitawa Manufacturing uses a normal cost system and had the following data available for 2022: Direct materials purchased on account Direct materials used Direct labor cost incurred Factory overhead incurred Cost of goods completed Cost of goods sold P 74,000 41,000 65,000 73,000 146,000 128,000 Beginning direct materials inventory Beginning WIP inventory Beginning finished goods inventory Overhead application rate, as a percent of direct-labor costs 125 percent A. The ending balance of work-in-process inventory is: B. How much is the over or underapplied overhead? C. How much is the adjusted Cost of Goods Sold assuming that over or underapplication is disposed in COGS? 13,000 32,000 29,000
Problem#5 Oitawa Manufacturing uses a normal cost system and had the following data available for 2022: Direct materials purchased on account Direct materials used Direct labor cost incurred Factory overhead incurred Cost of goods completed Cost of goods sold P 74,000 41,000 65,000 73,000 146,000 128,000 Beginning direct materials inventory Beginning WIP inventory Beginning finished goods inventory Overhead application rate, as a percent of direct-labor costs 125 percent A. The ending balance of work-in-process inventory is: B. How much is the over or underapplied overhead? C. How much is the adjusted Cost of Goods Sold assuming that over or underapplication is disposed in COGS? 13,000 32,000 29,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem#5 Oitawa Manufacturing uses a normal cost system and had the following
data available for 2022:
Direct materials purchased on account
Direct materials used
Direct labor cost incurred
Factory overhead incurred
Cost of goods completed
Cost of goods sold
Beginning direct materials inventory
Beginning WIP inventory
P 74,000
41,000
65,000
73,000
146,000
128,000
13,000
32,000
29,000
Beginning finished goods inventory
Overhead application rate, as a percent of direct-labor costs 125 percent
A. The ending balance of work-in-process inventory is:
B. How much is the over or underapplied overhead?
C. How much is the adjusted Cost of Goods Sold assuming that over or
underapplication is disposed in COGS?
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how does it became an over applied OH? how will you know that it is under or over applied OH?
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