Yarn Textiles manufactures laces used in shoes, boots, and sporting goods. The cost to manufacture shoe laces is $0.94 in direct materials, $0.79 in direct labour. Under normal capacity, the company estimates that total overhead is $0.77 per unit, based on normal capacity of 1,695,000 units. Consider the following independent scenarios: Actual units produced (units) Ending inventory (units) Required: 1. Calculate the total overhead over- or underapplied, if any. (Negative amounts should be shown with a minus sign.) Cost of goods sold Ending inventory Scenario A 1,895, 000 315, 000 2. Calculate the total COGS and ending inventory under each scenario. Scenario A Scenario B 1, 395, 000 315, 000 Scenario B

Yarn Textiles manufactures laces used in shoes, boots, and sporting goods. The cost to manufacture shoe laces is $0.94 in direct materials, $0.79 in direct labour. Under normal capacity, the company estimates that total overhead is $0.77 per unit, based on normal capacity of 1,695,000 units. Consider the following independent scenarios: Actual units produced (units) Ending inventory (units) Required: 1. Calculate the total overhead over- or underapplied, if any. (Negative amounts should be shown with a minus sign.) Cost of goods sold Ending inventory Scenario A 1,895, 000 315, 000 2. Calculate the total COGS and ending inventory under each scenario. Scenario A Scenario B 1, 395, 000 315, 000 Scenario B

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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